Sections

Nintendo stock rises again after profit loss dip

Friday, 24th January 2014 10:31 GMT By Dave Cook

Nintendo’s stock has risen again, following an 18% dip sparked by the company’s recent profit loss warning.

We reported on Nintendo’s stock dip earlier in the week, coming shortly after Nintendo’s troubling financial report.

CVG reports that Nintendo’s share price has risen from $14.53 following the dip to its current price of $16.36. The 18% drop was the company’s largest since September.

Despite Nintendo’s poor financials and calls for the company to change its ways, president Satoru Iwata has vowed to remain in his position. He has also rubbished the idea of Nintendo games on smartphones as a potential money-spinner.

What do you make of Nintendo’s current position, and what needs to be done to reverse its fortunes? Let us know below.

Latest

13 Comments

  1. Pytox

    thanks to the new console rumours :P

    #1 11 months ago
  2. Xbone

    Poor Luigi.

    #2 11 months ago
  3. Christopher Jack

    They’re certainly far off from the hallowed doom everyone has been reporting but they can’t continue operating like this either, financially they can for over a decade but no sane business person should let them continually run at a loss.

    The 3DS is doing well, maybe they could focus entirely on their portable business otherwise if they continue with their home consoles they’ll need to drastically change. Maybe simply lowering the price could be all they need to recapture the casual but they’ll never convince the core to buy their last gen quality console. So the way I see it they have 3 options:

    1. Drop the price (of both the console & games)
    2. Drop the home console business entirely.
    3. Write the Wii U off as a failure & move onto a new console worthy of competing in this gen.

    Alternatively they could do something entirely unexpected like moving to 3rd party, I won’t expect Mario on PlayStation or Xbox but could imagine him on iOS, Android, Smart TVs & PC.

    #3 11 months ago
  4. SplatteredHouse

    @3 I disagree with your initial point. When retail starts getting angsty, wondering whether they could put things that’ll actually sell on the shelves instead, that can’t be a good sign.

    This news may not be as clear-cut, in that the major drop in Nintendo’s share price occurred (and was widely reported from data) on the Japanese stock market, whilst this report clearly references the price in dollars. Your own report that you link to VG, is plainly based on the YEN price :/

    #4 11 months ago
  5. wicktus

    The wiiU is a total hardware and marketing mess,
    - The gamepad has this toy-ish feeling, poor battery life, RESISTIVE screen, too big, POORLY designed period.

    - The wiiU is NOT powerful enough and TOO expensive for what it is !
    GPU :0.9-1Tflops is a MINIMUM !

    - System sellers are still inexistant, : Mario Kart, Super Smash, a MArio galaxy-like, Metroid prime, Nintendo is focusing on Games that aren’t made for a console that isn’t spread enough, you WON’t buy a wiiU just for DK/
    (killzone PS4 IS a system seller for example)

    - OS is full of flaws : especially speaking of download speed, connectivity loss, loading speed etc.

    - The wiiU-3DS interaction is inexistant and it could’ve been used sinoce the 3DS is a success.

    - Internal storage : a big wtf.

    - Nintendo has always been a major force speaking of innovation, the wiiU is just A BIG BIG BIG mistake, it’s NOT original and it was designed to keep surfing on the wii Wave, but that wave vanished 3 years ago…

    #5 11 months ago
  6. monkeygourmet

    rumours of my death are greatly exaggerated

    #6 11 months ago
  7. mistermogul

    @6 – lol!

    #7 11 months ago
  8. Joe Musashi

    Nintendo’s cash reserves are infamous.

    However, its their percieved value as a relevant brand that is being eroded through the Wii U and through their lack of market agility.

    The input from brand loyalists on this issue is, for reasons that hsould be obvious, not going to carry much weight.

    JM

    #8 11 months ago
  9. SplatteredHouse

    @8 How likely do you think a deep price cut is for WiiU? Wasn’t there a report that they were already at the point of barely scraping even, per unit (unless that was another platform holder…)
    I know that I don’t find that console very attractive to buy, mainly because of what can be expected once you own one. It has a price to me, but the price it’s selling for atm is not that close.

    #9 11 months ago
  10. antraxsuicide

    @9
    Not likely. People have done breakdowns of the console, and due to the nature of the parts inside of it, it can really only drop by about $50 over the next few years. If the price of that system drops, it’ll be Nintendo eating a ton of money to do it.

    #10 11 months ago
  11. Cobra951

    “Alternatively they could do something entirely unexpected like moving to 3rd party, I won’t expect Mario on PlayStation or Xbox but could imagine him on iOS, Android, Smart TVs . . .”

    *Shudder* What a tragedy that would be. Dedicated game hardware with real controllers, or GTFO.

    A friend posted this link on a board I frequent. Sanity checks are always welcome:

    http://www.wired.com/gamelife/2014/01/nintendo-mobile/

    #11 11 months ago
  12. Christopher Jack

    @11, Never said mobile gaming was entirely pleasant, especially the way it exists now. But the numbers are there waiting for someone to hit the gaming jackpot, all we need are a few new standards, imo they should start with a controller & service. Navigating the App Store & Google Play for quality games is oddly horrific, especially from Google the search engine company.

    Once that’s out of the way they can think of ways of making mobile phones & tablet integrate seamlessly with TVs so they can be used as portable home consoles too but that’s down the track. First focus on making portable gaming pleasant then make portable gaming possible at home without hiccups. I’m expecting Google & Apple to eventually push their devices as the one & only device you’ll ever need.

    #12 11 months ago
  13. SplatteredHouse

    Here, I found a chart illustrating Nintendo’s profit/loss record of late. They’ve been stuck in mud since end of 2010: http://asia.nikkei.com/var/site_cache/storage/images/node_43/node_51/2014/201401/20140120/20140120nintendows/305145-1-eng-GB/20140120NintendoWS.png
    Source: http://asia.nikkei.com/Business/Companies/Nintendo-failing-to-adjust-to-the-smartphone-age

    #13 11 months ago

Comments are now closed on this article.