Koichi Ogawa, a portfolio manager at Daiwa SB Investments Ltd. in Tokyo has told Bloomberg that Nintendo really needs to embrace the social networking arena along with the mobile space to be relevant. If Nintendo doesn’t intend to address these things at tomorrows press conference then Ogawa predicts stock in the company will tumble.
The creator of the “Super Mario Bros.” franchise should introduce more major titles at today’s 3DS conference or consider developing games for social networks to restore investor confidence in a stock that’s tumbled more than 80 percent since its 2007 high, analysts said. President Satoru Iwata, bracing for the game maker’s lowest profit in 26 years, is seeking to win back users who are content to play games on Apple Inc. (AAPL)’s iPhone and Facebook Inc.’s online service.
“Nintendo should consider embracing social networks, even though it’s going to be a latecomer. Even with the price cut, it’s hard to lure consumers as various platforms including the iPhone and iPad are available now. Those people won’t use 3DS to play cards or mah-jongg.”
“Nintendo should better explain why the company isn’t embracing the surging market for games on social networking services such as Facebook.”