E3 2011: Nintendo stock sinks post-Wii U unveil
Investors wary of new console sell off game giant's stock on Tokyo Exchange, causing 5.63% dive; Iwata says console will likely cost more than $250.
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LOS ANGELES--Yesterday, Nintendo unveiled the Wii U with great fanfare at the 2011 Electronic Entertainment Expo. The console sports a host of innovative new features, thanks in large part to its revolutionary controller, which is centered on a 6.2-inch touch screen and boasts twin circle pads, a D pad, two shoulder buttons, twin triggers, face buttons, and an accelerometer, microphone, camera, and gyroscope.
Unfortunately for Nintendo, the console apparently didn't impress its stockholders. Today, the company saw its stock price sink 5.63 percent on the Tokyo Stock Exchange, closing the day at ¥16,930 ($212.18).
Daiwa Securities Co. Shuji Hosoi told the Associated Press that the drop was sparked by doubts about whether the Wii U will reach the same sales heights as its predecessor, the Wii. "People are puzzled whether this will really sell," he told the news service.
One barrier of entry may be the Wii U's price. Speaking to the Nikkei news service, Nintendo president Satoru Iwata indicated the new console will probably cost more than ¥20,000 ($250.47). The current-generation console began its life cycle selling for $250, but its price has since dropped to $150.
In a separate interview with the Wall Street Journal, the executive also declined to give a price for the Wii U, preferring to focus on the console's more innovative aspects.
"This is going to be able to create what I call a new format or new structure of entertainment," Iwata told the financial daily. "By taking advantage of this new structure of entertainment, great new ideas can be popped up by developers."