Nintendo Unexpectedly Excluded From Nikkei, Stock Falls

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We recently reported that Nintendo’s stock had climbed as a result of expectations that the company would be included into the Nikkei 225, Japan’s prestigious equivalent to the Dow Jones Industrial Average. In a turn of events, Nintendo has not been added to the group of 225 blue-chip companies of the Tokyo Stock Exchange that make up the Nikkei, and as a result, the company’s shares fell 8.4% to 10,980 yen.

After transferring its listing from Osaka to Tokyo, investors had long speculated that the video game giant would become one of the 225 companies that make up the Nikkei, a revolving index that includes Toyota, Sony, and Yamaha, among others. In 2013, Nintendo’s stock has risen 31% because of these expectations, and was predicted to continue climbing following the announcement of the 2DS and a Wii U price drop. Instead, its 7.3% decline is the biggest drop experienced by Nintendo in over two years.

Only time will tell if Nintendo is able to bounce back from these new developments and the free-falling sales of its flagship Wii U console. In a recent report, Tokyo analyst Takao Suzuki summed up Nintendo’s exclusion from the Nikkei as follows:

“We believe Nintendo’s shares have been overvalued due to speculative demand, on the assumption that they would be included in the Nikkei. As this expectation has come to nothing, this appears to be the right time to sell.”

Nintendo’s Shares Escalate As Company Expected To Join Elite Nikkei 225 Stock Average

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Nintendo’s stock has climbed 3.9 percent as the company is expected to join Japan’s Nikkei 225 after its yearly review. The Nikkei 225 is Japan’s equivalent to the Dow Jones Industrial Average and is comprised of an index of 225 blue-chip companies traded on the Tokyo Stock Exchange. Companies are included and removed regularly based on performance and eligibility. Other prominent components in the Nikkei are Toyota, Yamaha, and Sony.

Despite ailing Wii U sales, Nintendo’s stock has seen substantial gains this year, as the Reuters article linked above states that the company’s shares have risen 29%. Induction into the Nikkei would likely raise the company’s trading price even higher. The Nikkei as a whole has gained a whopping 33% on the year. A decision on Nintendo’s placement into the Nikkei is to be made this week.

Nintendo Reportedly Unifying Its Handheld And Home Console Divisions

wii_u_gamepad_nintendo_3dsAccording to Nikkei.com, in an effort to see more interaction and cooperation between the two, Nintendo is planning to unify its handheld and home console divisions. The move, if proven to be true, will see employees from both hardware-making divisions merging and moving into a new development building, which is scheduled to be completed by the end of the year and is near Nintendo’s headquarters in Kyoto. Nintendo allegedly hopes the move will encourage more connectivity between its handheld and home console platforms.

Thanks to IGN, here is a translation of Nikkei.com‘s report:

“Game system development projects are becoming larger and taking longer to complete as the machines become more advanced. Nintendo apparently has its sights set on speeding up these projects by sharing development processes for consoles and handheld devices where possible and by reassigning personnel depending on the situation. It sees interactions between engineers as a potential hotbed of new ideas.”

“In an effort to create more innovative and attractive products, Nintendo Co. will combine the development segments for its home video game consoles and handheld game devices,”

“The decision comes on the heels of recent releases of the Nintendo 3DS portable system in February 2011 and the Wii U home console last month. With more people using their smartphones and tablets for entertainment via the Internet, including games and videos, Nintendo aims to come up with next-generation game systems that will turn heads.”

“The two teams will eventually be integrated and the segment will be organized by function, such as circuits, mechanisms and design,” quotes the report.

“Game system development projects are becoming larger and taking longer to complete as the machines become more advanced. Nintendo apparently has its sights set on speeding up these projects by sharing development processes for consoles and handheld devices where possible and by reassigning personnel depending on the situation. It sees interactions between engineers as a potential hotbed of new ideas.”

“Such functions are already available with the Wii U, but Nintendo likely hopes to better streamline its products by tapping into such online services as Twitter and video sites.”

Nintendo Denies Nintendo 3DS E3 Revamp

Earlier today Japanese publication The Nikkei stated that Nintendo were preparing to show off a larger revamped version of the Nintendo 3DS at tomorrows E3 event. Nintendo has just now issued a press statement saying that these rumours aren’t true, and are entirely speculation. Of course they would say this, we shall see for certain tomorrow.

Nintendo Wii: Nintendo Carefully Considering 3D For The Wii’s Successor

Nintendo President Satoru Iwata has informed Japanese business publication Nikkei that he’s closely monitoring the 3D TV market, and depending on consumer uptake, 3D could well be a prolific feature of the Wii’s successor.

“If you display a 3D image, the image quality becomes extremely bad, so we’d probably do it with the next system”, he said. “We’re thinking that the timing should be once the 3D television adoption rates crosses the 30% mark. We’re looking at the adoption trends.”

- Satoru Iwata

Source

Nintendo Wii: Wii Fit Plus Details Revealed Ahead Of E3

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Nintendo is set to launch a new ultra precise version of the Wii Fit Balance Board alongside an updated and newly refined Wii Fit.

Japan’s Nikkei newspaper has leaked details of a newly revised Wii Fit and Balance Board ahead of Nintendo’s planned announcement at E3 this week. Wii Fit Plus will include additional exercises for gamers to participate in and will include a more accurate balance board.

Source