E3 2011: Nintendo stock continues post-Wii U decline

House of Mario's share price drops another 4.6 percent two days after new console is announced.

by

LOS ANGELES--Investors are not giving the Wii U a vote of confidence. Two days after the new console was unveiled at the Electronic Entertainment Expo in Los Angeles, Nintendo's stock continued a two-day slide on the Tokyo Stock Exchange. Today, the company's share price shed another 4.6 percent of its value, ending trading at ¥16,160 ($201.21).

Nintendo's share price is taking a beating following the Wii U unveiling.

The continued decline comes in the face of increased third-party support for the Wii U. Last night, Nintendo and Ubisoft held a joint press event at which the latter publisher announced it had five titles in development for the console. It showed off two of them: Killer Freaks From Outer Space, which will use the Wii U controller's screen as a gun sight, and Ghost Recon Online, which will have its own "always on" social network. The French publisher is also developing Assassin's Creed and Raving Rabbids titles for the console, as well as an unnamed sports game.

Ubisoft isn't the only third party supporting the Wii U. Activision, Electronic Arts, Tecmo Koei, Namco Bandai, THQ, and Warner Bros. have all publicly rallied behind the console. Games confirmed for the platform include Ninja Gaiden 3: Razor's Edge, a new Tekken, Darksiders II (at launch), and Batman: Arkham City.

For more on Nintendo's vision for the Wii U, check out the company's E3 2011 press conference.

Discussion

287 comments
thingta42
thingta42

Thing that most people forget about out current gen cosoles, is that 90% of them only display at 720p. 1280 x 720 resolution, The Wii-Us default resolution might display at 1920x1080p. Now that puts it a step ahed the curent gen consoles already.

Cantido
Cantido

Wow, history is repeating itself. When the Wii finally came out the stock shot up from 20 to 70 points. I'm buying NTDOY on the cheap. They have nowhere to go but up when Wii U gets released.

loveless9
loveless9

People are always going to complain. I've seen people complain that the WiiU is going to be way too expensive because of the controller, and other people complaining that Nintendo will only allow ONE controller per console.

montblanc512
montblanc512

i'm waiting for more details. I've been hearing rumors that Ninty really does plan on only allowing one Wii U controller and the rest Wiimotes. Which if true, completely kills any hope of Wii U being worth buying. I wanted a more traditional controller, and even with the screen, this one has all the buttons I miss from pre-wii days. But telling me that if I pick up a multiplayer Wii U game only one person gets the good controller and the other has to play with Wiimotes, is a deal breaker. Again, this is just rumor, but if it does end up being true, I will not be purchasing a Wii U.

gamescottsman
gamescottsman

Personally I'm not surprised, the Wii-U thing just seems to me like ANOTHER accessory for the Wii that is already bursting at the brim with white plastic fails. The Wii 2 with better hardware and the same controller is what I am keen on - which they failed to present at E3. WTF.

Wizgot
Wizgot

@Metroidfire I guess, Nintendo was my thing when i was 9 to 13. I still have some nostalgia from my Pokemon days.I dislike Nintendod because they do half ass work on all there console while the big boys like Microsoft and Sony actually make next gen consoles. The Wii U is just a slightly upgraded Wii. Anything to make a buck.

chimpmeister
chimpmeister

The WiiU presentation at E3 was really poorly planned, especially the part where they totally ignored the console itself and focused on the WiiU touchpad controller. Nintendo's stock dropped because investors don't like how Nintendo handled E3, and they also don't have confidence in a new Nintendo console to succeed the Wii. The WiiU looks like another gimmicky system from Nintendo, much like their last three systems (DS, Wii, 3DS). I think investors are going to stay away from Nintendo stock for the indefinite future, based on these factors.

superxtreme101
superxtreme101

Actually, this decline is quite good from an investors point of view. Let's think about this for a second, the life of Nintendo's Wii is almost over and they are launching a new console so therefore their stock price will definitely decline until they launch their new console so once they do BOOM, an overheating increase in stock price. So invest now, buy some shares at a minimal price and once they launch their new console sell them at a higher price. Can't get any simpler than that, but it depends on the investor's aim and risk gearing, Is he or she willing to invest and lose a lot of money this year? How long will this decline last? Question and no answers. Make money or lose it?

Metroidfire
Metroidfire

@Wizgot your a ps3 fanboy aren't you

Metroidfire
Metroidfire

[This message was deleted at the request of the original poster]

MD1500
MD1500

Nintendo's stock dropped when they announced the DS, the Wii and the 3DS. Why would the Wii U be any different? This is completely normal. Apple announced their new iPhone recently - Guess what? their stock dropped too. As for Sony, their stock lost $2 billion due to the PSN hacking.

swavo1
swavo1

Screw that - this just means I can buy some stock of Nintendo because I DO have confidence. Remember how the Wii's announcement tanked stock value and then look what happened? Thank you for giving up on Nintendo because developers OBVIOUSLY haven't, and won't unless they see there is no chance.

fadersdream
fadersdream

I was disappointed in the Wii, therefore I will not buy a successor to it until it has five games I really want.

remirousseau
remirousseau

Oh dear god, It's not a vote of no confidence, it's not even linked to the technology or to gaming... it's called investing!!! Nintendo announced a new console, this means that for the next year they won't sell many Wii, they'll put more money in R&D, they won't release that many big name games and thus won't make the same absurd amount of profits they did the last 5 years. It's really only logic... you sell your shares while the price is high and starting to go down with relatively bad dividend expectation. The share will go down in price and you buy it back close to release when we'll know if the profits has the potential to go back up.

Crimson_Erskine
Crimson_Erskine

Every major developer loses money on consoles, thats just how it is. It costs a lot more to make than what they can sell it for. They make their money on games. Nintendo's Wii had a meager handful of games worth putting money towards, this is why they are becoming a joke in the gaming world. Their games are made for casual only, and the Wii U won't be any different, the graphics suck and there really won't be anything they can turn out that the other systems won't make a better version of.

garrett_duffman
garrett_duffman

the wii u is going to be a huge success, for 2 reasons mainly. the "hardcore" specific advertising, and the casual fanbase. 1. "Hardcore" specific advertising is a must. the wii would have sold more provided nintendo had given the hardcore gamers more to look forward too. nintendo is doing just that with the wii u videos and presentation. the 3rd party support looks more than promising, and the 3rd party enthusiasm is awesome. 2. the "casual" audience will recognize the wii name at the beginning, and they will buy it. its really as simple as that. they will see the new wii sports and see it as a necessary upgrade, and they will buy it. the games that they buy are obviously up to them, but once again, with more 3rd party support, more options come to everyone.

Sigil-otaku
Sigil-otaku

@chrispicard I don't think it'll have the same result, I think brand loyalty is a fickle thing that doesn't automatically generate sales (hence why PS2 was biggest seller by a mile then Wii comes out and sells twice what the PS3 or 360 does year on year) so it's down to the product, pricing and offerings of course. I think it's possible it will stay popular and see no reason it couldn't sell as well as the PS3 and Xbox 360 are doing and that's what I believe it will do. The higher price will deter casual gamers but my post earlier was more to state it won't be a failure rather than it will be a runaway success. I doubt it'll get the sales of the Wii (especially not as quick) but it will sell very well I'm guessing. I'm quite confident it will sell as well as the 360 and PS3 should it be priced fairly and should it deliver some good games.

chrispicard
chrispicard

@Sigil-otaku Sure the wii suprised everyone, i do wish i'd bought nintendo shares before the wii release. But if you think this is going to have the same result you're MAD!... i can see they're going for the "Hardcore" this time as well, but i disagree that they're going to get them!.. As for the "Casual" crowd, this has less appeal to them than the simplisity of controller-free Kinect does, also they're less likely to shell out money (in the middle of a global depression no less), for another console that just seems to over-complicate gameplay. Time will tell of course as to which one of us is right, but i predict only the most determined nintendo fans will buy this, and thats not a big market.

Frequenxy
Frequenxy

Lol at the people thinking this is gonna deeply hurt Nintendo. On another note, might not be a bad time to buy Nintendo stock. Buy low, sell high.

superfakerbros
superfakerbros

If I can say anything, it's this. If you don't like Nintendo or the Wii or anything like that, than why are ANY of you guys here? Like, WTF?! Did you guys seriously come here so you can rant on how the Wii is a gimmick or it has sh*t games or whatever? Do you guys have no lives that you're going to go on a video and comment on how much you hate a piece of hardware? That's sad and pathetic! I don't like the 360 all that much but I'm not going to on every Kinect video saying Microsoft is failing or anything like that. Like, seriously? I'm here just to see the news of something I'm interested and offer opinions. If you so-called hardcore gamers are interested in hardcore games, go on the videos of your super-hardcore games and leave any supposedly non-hardcore companies out of it. You know, enjoying something that someone else doesn't like is only natural, it doesn't mean they're not true practitioners of that particular thing.

Sigil-otaku
Sigil-otaku

@chimpmeister Because when a lot of people criticize the Wii U system as gimmicky and child like or odd there is a reason, they are focusing on the brand (nintendo) and the controller (which this time is very likeable to the Vita in both layout, design and appearance). My point was to show it wasn't all that gimmicky / out there. The Wii U will be far more powerful than the Vita too so why your praising the Vita as a powerful handheld (which it is but that is irrelevant) as if that is different to what you'd get on the Wii U is odd. Why you have a biased sound to you is beyond me (fanboyism?) but there's no reason to try and praise the hell out of the Vita and criticise the 'dumb terminal' controller of the Wii U. My point was more to show how the Wii U was quite normal in design and play style to what gamers are used to as handhelds are common but you don't seem to have picked up on that and think the PS Vita needs defending and the Wii U needs slandering? That's one way to avoid the issue I guess. I don't see what the 3DS has to do with this argument either but another throw-in insult to Nintendo seems reasonable? Not really. Stick to the points.

chimpmeister
chimpmeister

[This message was deleted at the request of the original poster]

chimpmeister
chimpmeister

@Sigil-otaku Why are you trying to compare the WiiU controller with the Vita? They are totally different devices! The Vita is a powerful, well designed handheld game system with a 5.0" screen, dual analog sticks, front and back touch controls, and a powerful quad-core CPU and sophisticated GPU. The WiiU controller has no brains in it at all, it only streams video from the WiiU console itself, therefore it can't be compared to the Vita. It isn't a handheld system at all, just an interface with the WiiU, thats it. There is no need to look at photos of the WiiU controller next to the Vita; yes it does have a larger 6.2" screen, but besides that it is nothing more than a "dumb terminal" for the WiiU. And btw, Nintendo should have thought about screen size for the 3DS, the measly 3.53" top screen they put on it is really lame, and only gives 400x240 resolution (per eye) in 3D mode, whereas the SIX YEAR OLD PSP has a 4.3" screen with 480x272 resolution! Come on Nintendo, this is 2011, not 2005! Epic fail!

OLIVERKHAN
OLIVERKHAN

People who dont like nintendo should not post here

iplayah
iplayah

I didn't buy a Wii so why would I bother getting a Wii U?

Sigil-otaku
Sigil-otaku

@chimpmeister This isn't gimmicky at all, you'd have to be devoid of sense to think so. Just LOOK a second at these photo's and compare how the Vita looks to the Controller of the Wii U and imagine playing them. Does it seem worlds apart and gimmicky now? When they have the same layout short of the analogues being higher on one and lower on the other. It's no different to holding a handheld to play games and no one considers handhelds dumb gimmicks so why would a controller that can simply enhance gameplay by adding stuff to consoles only handhelds with touch screen controls could do before be such a horrible gimmick? It's a brilliant idea to be honest, it's more functional and not as different to a normal controller than the Wii was so I praise it's design. But can I ask you, how is the Wii U more of the same when nothing demonstrated so far has suggested this? It has motion controls sure, so does the Vita though and that's considered hardcore. The only difference is third party support and mature titles, guess what Nintendo had on show at E3 though? Exactly the kind of titles hardcore gamers want, from Ninja Gaiden (action), Ghost Recon (third person shooter), Zelda (adventure), Metro 2033 (first person shooter) to others like Dark siders 2. Your simply speaking out of prejudice of Nintendo rather than rationality. Look at the facts, When they showed the Wii it was largely Wii sports shown.

Wizgot
Wizgot

YES. The beginning of the end has started. DOWN WITH NINTENDO!

grbolivar
grbolivar

@chimpmeister I couldn't say it better, I miss the old good day of the SNES era...

chimpmeister
chimpmeister

Once again, Nintendo goes for the gimmicks instead of focusing on real hardware and good games. The Wii was a total joke, silly motion control gimmick and tons of shovelware on an incredibly inferior console. It sold boatloads because a bunch of casuals bought it, but most of them didn't even bother to buy more than one or two games after buying the console, thus the attach rate for Wii is poor. WiiU looks like just more of the same from Nintendo, hook people with silly gimmicks because you can't compete when it comes to actual hardware and games. I have MANY older Nintendo systems (NES, SNES, N64, GBASP) but from the Gamecube forward, I skipped all their gimmicky stuff (including the DS and Wii). Even the 3DS is built on a gimmick, no-glasses 3D, and from what I've seen it is going to be a total failure. It is a slightly upgraded DS with the 3D gimmick and a few other lame additions, and is way overpriced for what is offered. I predict that the WiiU will be Nintendo's final hardware release, after it fails they'll go the way of game creater/publisher only, and skip the hardware. Let's face it, they've done a very poor job on all their hardware since (and including) the Gamecube, time for them to hang it up.

Sigil-otaku
Sigil-otaku

@chrispicard if people put money in Nintendo before the wii was released (stock) they'd be rolling in money. Wii U is like the Wii only even more hardcore friendly so able to appeal to even more people and this time more 3rd party support and it's the first next gen console to launch (you realise that is quite big right?, helped keep MS ahead of Sony for 6 years).

Reyveign
Reyveign

As Nintendo always does, in a year or two we'll be looking at a smaller, more compact & functional piece of hardware. Then everybody can be serious about buying one of them (or not buying). Never buy a Nintendo portable at release, since a vastly superior version will be right around the corner.

SloganYams
SloganYams

People are making way too big of a deal about this. It will pick back up, these things fluctuate, they always do. It's down now, it will be up later. Granted, I think the Wii could have held on for another 2 years, but I guess since Wii U is like a hybrid of Wii with a next-gen console, I can see what Nintendo is going for. Draw in the "hardcore" crowd with third party support and the like, but keep the newer "casual" audiences feel welcome with the Wii label and such. It will still sell more than Sony or Microsoft's consoles, but I just wonder if the timing was completely right (again, the Wii has some steam left).

chrispicard
chrispicard

Don't blame them, no way i'd invest or keep my money invested in that thing!... it's gunna flop hard, disagree?.. go ahead and buy some shares in Nintendo.. i dare you...

BILLNYE6983
BILLNYE6983

Stocks are not dropping because investors are being stupid. They are also not falling because Nintendo is not catering to the hardcores or whatever. They are dropping because the Wii U is not a good investment. The console is launching far too early. They have the most selling console of this generation. Milk that as long as you can. The Japanese and American economies are both not in great places. I would even say the world in general is in a bit of a decline economically. This new console is for sure going to cost more than the Wii at launch they have already said. The console is going to probably cost at least $250 just to manufacture. I would probably say more than $300 but want to be extra fair. Then you factor in the price of the tablet. That thing is probably going to cost at least $50-75. Then of course R&D and every other cost. Sony and MS could both just chill and keep selling way more games and making way more money and THEN release their own consoles and not even have to put as much money into them to get better performance. By 2014-2015 much better technology will be out actually specifically intel 3D transistors and surely other technology as well. Not to mention how much cheaper that new technology will be. Nintendo will also be in this weird 7.5 console generation alone The Wii made its bank by catering to a casual market. Wii was cheaper, simpler, and as far as the consumer was told funner. Investors don't want to invest in something so risky imo.

ultimate132
ultimate132

@PseudoElite Gamecube had nothing special about it, and actually it was high tech for its time if you consider comparing it to the ps2 and how it did compare to the xbox. That's a moot point you made. Also, it will be a powerful console, NIntendo realizes that eventually power isn't going to get much greater for game and they realize this, that's why they go for innovation and with this system theyre going back to using some good tech as wel albeit not the most advanced. But a few home consoles later, Nintendo will have gotten an entirely new way to play once power becomes irrelevant after easing everyone into these motion controls. What did SOny and Microsoft do anyways? Copy Nintendo with their own versions really

PseudoElite
PseudoElite

Wii U is yet another gimmicky console that will rise and fall quickly much like GameCube and Wii. Why Nintendo refuses to make a high tech console like the Super Nintendo back in the days is beyond me.

deathstream
deathstream

@Megavideogamer But nothing shown has indicated that the Wii U IS an "8th generation" console. It looks like Nintendo has finally decided to join the 7th generation, but with a new gimmick. Will it get 3rd party support? IF it can even run enough controllers, it might get ports of 360 or PS3 games. And those games will all sell better on the other systems because Nintendo once again kept their console a generation behind. by early 2014 at the latest the PS4 and XXXbox will be out and Nintendo will be irrelevant again because the Wii U won't be able to handle the new games. I was defending Nintendo going into the conference, thinking that they were REALLY going to show a next gen console. They didn't. The Wii U controller is yet another neat little gimmick that will bring nothing to most 3rd party titles. They will half-heartedly try to appeal to core gamers, like they always do. Then when the first couple of M-rated games fall flat, Wii U owners will spend the next year waiting for another Mario or Zelda. They needed to show off a powerful new system that would launch the next gen and they failed to do so. Extremely diasappointing.

GeigerdolylWodd
GeigerdolylWodd

People dont entirely understand how this thing works so their skepticism is marked by their quickselling of their stocks as a their loss of faith in Nintendo's latest innovation.So let me try to break this down for you guys you don't have just another wii. This isn't a gimmick what this is is more along the lines of the Kinect, in addition to a Wii, and possibly a DS when need be. Sure it could still be used like a wii but it also can be used to track your motion and position without actually holding the wiimote controller as well. Pay attention to the throwing star portion of the Wii U trailer video http://www.youtube.com/watch?v=eniBUtc4Uws they aren't even holding the wiimote controller when they do that. They just move their hand across the screen and it tracks its motion.The other thing I think may be an issue is the fact that Nintendo already has a tablet controller for drawing they released for the current generation Wii but even then its not like thisI understand the the hesitance to buy into what may be misconstrued as another handheld sans the controller or a gimmick but give it a chance.

Uberpeber
Uberpeber

Just wait 'till Nintendo gets it's buzz going.

Rovelius
Rovelius

@KanyeTwitty My thoughts exactly... consoles always had crappy/casuals games on the side who helped boost console sales and encourage 3rd parties. Granted, the Wii had too much of them but when Nintendo themselves basically said they're going back to the roots, everyone should just shut up and wait and see.

Megavideogamer
Megavideogamer

Nintendo has time to take note of the drawbacks of the Wii U. Including the current ability to use only 1 Wii U Tablet controller for it's games. Start making some of those launch games playable with 2 tablet controllers. Now is the time to look at increasing the technical power so that the Wii U can easily continue to perform well after Playstation 4 and Xbox 3 launch. The Wii U is believed to be 1.5 "The power" of PS3/X360 at least look at making it double mimimum. Yes Nintendo is afraid of the Razer and Blades style of business marketing. Selling the actual console at a loss. If Nintendo can aim for a price point of $325.00 - $399.99 They still will suceed. So your stockholder are telling you Nintendo that you have time to refine the Wii U before November 17th 2012 launch. The Big N just has to take a chance. This 6th Nintendo could be the best console of the 8th Generation. Nintendo you have the advantage of launching first in the 8th Generation of videogames. Use that advantage and listen to what you Share holders are telling you. Before you proceed with the Wii U.

nigelholden
nigelholden

All I know is that I'm looking forward to it, that and the Vita. Stock projections are one thing. Hands on and word of mouth is what will drive the sales when the time comes. If it sucks then, it fails. But if it's exciting as I think it *may* be, then it could very well be on par with Wii sales, and if it has genuine 3rd party support, exceed.

KanyeTwitty
KanyeTwitty

You are all being very silly. You really think stocks are dropping because they're not catering to hardcore gamers? People have had so stock in Nintendo because they know they sell to everyone, not just your fickle "hardcore gamers." This is likely a good sign for you "hardcores," seeing as all the people who invested in Nintendo due to their casual appeal are dropping it.

Biigboss
Biigboss

This is good on some level. They might see something is not working out, and it gives them time to iron out stuff and take into account hardcore gamers and what have you.

Yoshi10000
Yoshi10000

Im guessing that the Wii U won't hit the Wii sales unless they drop the price lower then 200 dollars