Nintendo stock down 34% since March of 2018

Something odd is happening with Nintendo stock in the last few months. After peaking around March, Nintendo shares have slowly been sliding downward, and more recently, the pace of decline has been accelerating with drops of as much as 5% in a single day. In total, shares are down about 34% since March.

https://www.forbes.com/sites/insertcoin/2018/07/05/why-are-investors-panicking-about-the-nintendo-switch/#59590bf228e7

Nintendo stocks are in a tailspin this year. Investors may have been too bullish on what once seemed like a sure thing when Switch debuted. But the dominoes started falling one at a time, and now investors are skittish. The E3 showing looked to set off some red flags since more AAA titles were expected. Let's look at some factors of what could be wrong.

"Just another Nintendo console?"

The Switch is not the Wii. The Wii was a zeitgeist for the market that Nintendo may not be able to capture again. Once the novelty wore off on that, the bubble burst hard. When the Wii U rolled around, the casual market saw no need to upgrade, or invest in another go round when Wiis were collecting dust in people's closets.

Are the "Nintendo console curse" woes starting to catch up to it? Overpriced ports, poor AAA third party support, relying on the core to keep above water etc.? Not to mention LABO giving them a HUGE black eye. It was likely the worst risk Nintendo had taken in ages. Or will things improve? Switch seemed to benefit from a first year of games that were likely supposed to be tail-end Wii U projects that were held over for the new system, making sales kind of frontloaded.

Other things that might be making investors nervous is Nintendo might be overpromising on the units they plan to sell. And Nintendo's already discussing a 3DS successor when this device was suppose to streamline the two markets into one cohesive ecosystem. A 3DS follow-up would kill the Switch. This wouldn't be a wise idea.

Maybe things will look up once Pokemon hits, but this is quite the alarming drop. The system is still selling well enough, but are the prospects still high as it was hoped to be?

Stock Wars.

In all seriousness though I expect it to go back up when Smash and Pokémon release.

I do not see how the business side of the gaming industry has anything to do with System Wars. And why is this discussion not found in the under-used Games Discussion forum?

You don't get to dictate that. This is plenty relevant.

does stock value give nintendo more money to make more and better games?

if it does then this is very bad.

if it doesnt then this is just a slap in the face to nintendo and nothing to be concerned about. just means people dont think of nintendo as being super successful anymore. People dont believe nintendo will succeed. just nintendooomed stuff.

No. It's simply the valuation of the company at any particular time. Nintendo operates on a large cash surplus AFAIK, but that doesn't mean they just make it rain on projects. There's still strict budgeting.

Nintendo needs to skip the gimmicks and deliver the games. I skipped LABO for obvious reasons. Aside from that, I think Nintendo is doing pretty good on delivering their own staple of games.

What they need to do to keep up momentum is stop with the idea of a 3DS successor. They've already got a new handheld capable machine on the market. Treat the Switch as they would a new 3DS. Put all their studios in development for the one system and have third parties treat it as the handheld as well. Nintendo never had problems with third parties on handhelds.

That means make the popular 2D versions of their games for the system as well. They also need to stop being morons about their virtual console. That's guaranteed money in the bank that they are giving the cold shoulder in favor of these mini systems they are releasing. It's stupid of them and I know many people (myself included) that decided to go with a Raspberry Pi and give Nintendo the middle finger for the lack of virtual console on Switch.

This. I never understood the relevance but fannies love referencing stocks.

So I take it that the lower the shares get the lower the fun gets in their games right? oh it doesn't effect the fun factor at all, phew Switch gamers dodged a bullet with that one.

/sarcasm.

I wouldn’t really put much “stock” in this. lol

Seriously though these guys freak out over everything and really isn’t indicative of much of anything. I’m sure it’ll go up again when Super Smash Bros. and Pokémon games come out.

Or that institutional investors like mutual funds are taking profits that were made off of Nintendo stock. It happens.

Yup. If we're going to talk about them, then all aspects that effect the stocks are open to discussion. It doesn't belong here.

@cainetao11: when I first came around here I tried to get people to cut it out and keep this place SW and talk regular games talk etc elsewhere as intended. Nobody wanted to have it. I gave up, I've got bigger fish to fry in my day. But if the crew is getting behind that...

No need for the grasping of straws. People made a gigantic issue of the 2% drop of the Sony stock that they couldn't even correlate to crossplay (but tried), I think this has some relevance as well. Nintendo will be fine. It's just investors tend to drink the Kool-Aid a little too much when it comes to Nintendo moves, making crashes like this wholly unnecessary.

True, but when the stock price is in the tank it's possible that motivates some "belt tightening" by management to improve financial performance. They need to do something to impress shareholders, and often "cutting costs" is something that is looked at. Problem is Nintendo is known as a notoriously cheap company to begin with. So "cutting costs" probably wouldn't be a fruitful way to go. What they need is some excitement, something to prove Switch will have staying power rather than turn into another shovelware machine..

Sometimes stock prices get detached from reality, but when it's down by such a large amount in a short amount of time that is usually a bad signal. Of course I believe Nintendo stock was way down after the Wii-U, and then rallied huge after Pokemon Go and leading up to the Switch. So this could be one of those instances where it got detached from reality a bit, both on the way up and on the way back down.

If it drops to 30000 I'll buy.

Great SW thread. Ahah

Maybe because GD is a dead forum and has no mods nor does it have actual users posting there expect random bots and trolls.

Hmm, I think what is going on is simply Switch is not living up to the expectations and the market are reacting on it.

Especially when Sony seems to be throttling along and manages to keep outselling switch and Xbox on the global market.

I mean, really. The other forums seem to go hours to days between posts. SW is probably the only board that gives this forum a pulse.

They did, where?

We'll see how well this ages a year from now, but expect that number to increase to as high as 60% until 1H results are announced in October. Stockholders are a reactive bunch and expect the stars, so when Nintendo said 20 million they started to think 25-30 million along with a massive increase in sales of mobile software. Now that it's clear that they'll struggle to hit even what they believe should have been an easy target, the investors already believe that it's completely over for Switch and that it'll keep going down with no recovery from there, so they'll once again start pushing for Nintendo to go all-in on mobile. Meanwhile, Nintendo ends up selling 17-18 million hardware units and 60-80 million software units, brings in record profits for the decade, and is labeled a massive failure that needs to to focus on mobile. Such is the stock market.

Lol, wtf is he talking about?

No idea, but because "people" made a gigantic issue that it seems no one here saw, then he must retaliate on other "people" lol.

Except it does have third party support. Not to the extent of other platforms, but it's more noticeable this go around. Hell, indies love it.

exactly so now is a good time to buy some stocks.

Time to buy me some Nintendo stocks while they're cheap and reap the benefits when they bounce back up end of the year.

I don't like the virtual console either. :p I actually hate their online in general. Still that's not the reason the stocks fell. Investors are pretty clueless about gaming and they want fast profits at a constant rate. Even when something is doing good but slows down a little or isn't doing as well as they thought, then they panic and sell their stocks.

Oh no. They’re doomed.

Welcome to the stock market.

How is Switch a viable replacement for the 3DS?

The physical size difference is huge between them and most will prefer a smaller device to travel around with over Switch.

Lol another fail thread from op, will these cows never learn??

The funny thing about Xbots is that they don't have to play dumb when they're actually are. You guys should know better than to deny shit all the time because you can't stop getting owned.

https://venturebeat.com/2018/06/14/sony-share-price-dips-as-fortnite-account-controversy-draws-ire/

https://gamerant.com/fortnite-switch-account-sony-share/

https://nintendosoup.com/sonys-stock-plummet-over-fortnite-cross-play-issue/

That was freaking out over 2%... for something people couldn't prove was related to Fortnite. It had then bounced back.

Nintendo stock is down a whopping 34% over several months in comparison. Newsworthy I think.

What's the point of having two portable devices in the market? As we saw last gen, the 3DS practically ate into the Wii U's sales. Nintendo fans won't support both a handheld and a console at the same time, even if it is a hybrid. The best thing Nintendo could do was to fuse the two markets.

How is reporting facts a fail? It's not my fault if you're so much of a shut-in, you can't bear the news.

Has anyone blamed the Lems or MS for this yet? It's got to be there fault in someway.

One is a true portable device, the other is a home console with the ability to be taken on the go.

3DS ate in to Wii U's sales because one device was better then the other, cost less and arguably, offered better games....... guess which device I'm talking about?

There's not a "huge" difference between a 3DS XL and a Switch.

they have nothing but sales. they already watched all their movies if they even bought them. mario and zelda both outsold any of their exclusives AGAIN.

I'm kind of baffled by the lack of investor confidence in Nintendo right now. I get that they didn't announce much for the remainder of the year, but they still have a few big titles this year (Mario Tennis, Mario Party, Pokémon, and Smash Bros.). Hardware is still moving very well and they still have an additional stream of revenue that will be coming this year from their online services.

As a gamer, I still won't buy AAA third party offerings on the Switch if they are available on other platforms, but I scoop up their exclusives and some of the indie games that are appropriate for handhelds.

I haven't read much into the speculation of the SP drop, but the only thing that could possibly be a reasonable assumption is the slow death/phase out of the 3DS with no realistic successor known (unless the Switch is that successor). Even then, that's my negligence of not paying any attention to what the 3DS is up to.

Lololol

:P

Hardly anything to worry about. Once SSB Ultimate releases this December, the stocks will rise again and December is a hard busy month which adds to the stocks level.

I've never bought stock before, but if it drops a little more then I'm seriously thinking about going research how to do it and purchase some Nintendo stock since I'm certain that it's going to go back up by the end of the year.

I can't believe that investors are so skittish just because some people on the Internet were criticizing Nintendo's E3 conference because they didn't get to see the Metroid game that they wanted even though Metroid, despite it's very passionate fanbase on the Internet, is not a top selling franchise and Nintendo will be releasing games in three of their actual best selling franchises (Super Smash Bros, Pokemon, and Mario Party) later this year.

What 3rd party support? Everything is skipping it. RDR 2, Fallout 76, BFV, BO4, AC Odyssey, RE2 Remake, KH3, DMC5, Cyberpunk, Sekiro, etc.

Oh noes all the stocks.

@storm_of_swords: Don't promote smart stock investments. XD

Of course stock is down. That happens when your console has No games and massive game droughts.

Well, I must be drunk yesterday when I thought I bought Crash Bandicoot on Switch.

Seriously, you are selective when it comes to what qualifies as third party support, like as selective as propagandist "historians" that like to either make s*** up or pretend their country NEVER did anything wrong at a certain point in time.

You are selective as well.

REveletions 1 and 2 are on the switch, and RE7 is also being ported, in a weird way, but still ported.

Yet RE2 is not, unless they are holding off to show it later.

@Ant_17: At least I acknowledge what released on Switch. Unlike him and other anti-Nintendo posters who deny any form of third parties being on Switch, because of certain games missing the platform, and/or because of their mad hate they have for Ninty.

I'm not being selective at all. The only notable 3rd party support Switch has gotten is Crash, Doom, Wolfenstein 2, South Park, Skyrim, and NBA 2K. That's pretty pathetic.

Nearly every game shown at E3 is skipping the Switch. When it can't even get annual Madden and CoD you know something is wrong. Even Spyro is skipping it for now.

The ability to inject Xbox victimhood into every topic I admit is quite impressive.

Your ability to detect sarcasm isn't quite as impressive though.