While the lackluster showing during Nintendo’s pre-TGS event didn’t exactly spell doom for the company, it might have scared off a ton of investors. After showing off the new pink 3DS, unveiling a handful of casual and hardcore titles, and officially talking about the circle pad, Reuters reported that Nintendo’s stock dropped five percent, but that may not be the case.
Even though Nintendo thought what they were doing — trying to recapture their old fan base and bring in even more newcomers — was for the good of the company it actually may have hurt them. This magical number isn’t on the same scale of the losses the company suffered after the 3DS price drop, but it still doesn’t bode well for Nintendo.
Here’s how it went down: Reuters is reporting that as a result of the Nintendo press conference, the stock prices of Nintendo took a significant drop, 5% to be precise, but the time lines don’t exactly match up. Looking at the hourly and daily prices, it appears Nintendo’s stock dropped before the press conference even occurred, meaning the news coming from the event wasn’t the primary cause of the drop on stock price, a stock that’s had a rough year thus far, causing Nintendo executives to take cuts in salary.
Without any really enticing first party support for the Nintendo 3DS, the company has been struggling to keep their head above water. And now, with some of their future plans revealed, it seems like some consumers have lost confidence in the publisher. On top of that, it’s hard to convince gamers, who now can access substantial titles on their mobile devices, to shell out $30 or $40 for an experience that could cost them no more than $10. The DS might be king, but iPhone and Android gaming has dealt a serious blow to the handheld console market.
And it’s not only Nintendo that is taking the hit, but also third party publishers like Capcom, who tend to have close ties with Nintendo’s handheld market. All of this is boiling up to some big changes, and based on a 5 percent stock slide, it can’t be good.
There has been a lot of uncertainty surrounding Nintendo as of late, but most gamers figured the company would find a way to bounce back. Sure there are some trademark Nintendo franchises like Mario Kart and Luigi’s Mansion on the horizon, but it still seems like gamers aren’t interested in what the 3DS has to offer.
With the Wii U in a similar state of uncertainty we hope that Nintendo can put together a solid launch line-up to ensure that something like this doesn’t happen again.
Have the lackluster pre-TGS announcements from Nintendo caused you to lose faith in the company? Do you think Nintendo should continue to support the 3DS or just cut their losses?