Nintendo’s stock has fallen 17% since late February. It is trading at less than 5% from its 52-week low and under $32. Some investors seemed nervous about Nintendo following the events of the tragic earthquake and tsunami that rocked Japan, others may have taken news about the 3DS allegedly causing headaches and being returned en masse as a signal to sell. Nintendo, however, has done nothing but look to reassure investors and the public in general about the state and health of their company.
Nintendo informed the public that no one in their company was harmed in the earthquake, that their buildings sufffered no damage, that their distributions centers are in America, Canada, and Germany, and that the company was all set for their 3DS launch. Nintendo also took the offensive regarding alleged returns, headaches, and screens of death relating to the 3DS. Nintendo has seemed to do everything possible to combat a negative perception about the company’s worth or earning potential, but the stock continued to fall. News that the PSP outsold the 3DS in Japan last week certainly will help not matters.
That does not mean all is lost for Nintendo, however. A lot of Japanese consumers that were interested in purchasing a 3DS already did. It did hold the top spot for a little over a month. It is also likely going to see another sales jump when Nintendo’s heavy-weight games hit the system. Remember, it only costs Nintendo about $100 to make the 3DS and it is selling it for $250.
Perhaps this downtrend in stock price is the perfect time to buy some Nintendo stock? Maybe the market and investors are overreacting to trivial concerns? Maybe it is something else entirely? Regardless of the rhyme or reason, gamers should not expect to see Nintendo go the way of the Dodo Bird or even Sega anytime soon. Maybe the house that Mario built has just entered an ice level and hit a slippery downward patch of ice. Mario always seemed to get out of those situations OK and even managed to beat penguins in a race while sliding down ice, Nintendo should be OK too.
What is your take on Nintendo’s stock-price decline? Do you think there is reason for Nintendo and its investors to be concerned? Let us know your thoughts in the comments below.
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Source: Wall St. Nation