Nintendo

Nintendo has suffered its biggest two-day drop in 18 months

Despite the Nintendo Switch performing extremely well and the Nintendo 3DS continuing to chug along, analysts and investors are completely befuddled as to why Nintendo has just suffered the biggest two-day drop in 18 months. Some think that the reason could be that Nintendo won’t show enough surprises at E3 while others are worried about Nintendo’s paid online offering which launches in September.

“Analysts reported getting dozens of inquiries on Monday from hedge funds and investors eager to understand the sell off. Theories ranged from falling expectations for positive surprises at next week’s Electronic Entertainment Expo conference, known as E3, to troubles with Nintendo’s online games. Many also pointed to quantitative traders selling on weakening momentum, although short-interest remained low by historic standards.”

“What is shocking is that recently there has been a lot of good news related to Nintendo,” Jefferies Group analyst Atul Goyal wrote in a report to clients, blaming the drop on traders who rely on technical chart analysis to make investment decisions. “Nevertheless, if chartists are giving a diametrically opposite view, we take this as an opportunity to reassess and review.”

“The market is probably selling shares ahead of E3 because people are concerned Nintendo doesn’t have a pipeline that will wow investors to a point where analysts will have to raise earnings targets again,” said Amir Anvarzadeh, a senior strategist at Asymmetric Advisors in Singapore, who said he got three calls from investors about Nintendo this morning. “The other question is whether their network infrastructure is really ready to cater to online gaming.”

“They’re years and years behind on the network business,” said Anvarzadeh. “That doesn’t mean they can’t catch up, but Sony spent billions on fortifying the PlayStation Network expansion.”

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62 comments

  1. What more do analysts need tacked on to this? Nintendo not having a virtual console pissed off a lot of people(obviously not is you hacked your console and kept it in airplane mode to stop the pesky updates) But even so Nintendo may have the switch and it’s fanboys sucking it’s proverbial teet but how long will it last until there’s only so much a company can do before fanboys wise up unless you dont care even if they do a half ass job and still play their stuff despite leaving things either rushed/buggy (unplayable)

    Liked by 1 person

  2. “They’re years and years behind on the network business,” said Anvarzadeh. “That doesn’t mean they can’t catch up, but Sony spent billions on fortifying the PlayStation Network expansion.” As long as Nintendo doesn’t scrap Nintendo Account like they did NNID, they can definitely catch up by spending the same amount of money on servers & such for when they eventually replace the Switch with a new system, thus making Nintendo Account even better on the next system.

    Liked by 5 people

      1. They want to take the easy, safe path that involves letting others take the risks with their money, so when they finally jump in, they can have it easier and/or so they can reap the benefits of other people’s hard work.

        Like

  3. Their mindset on online seems to still be “think of the children” and “people play games on the same couch”.
    It is ridiculous that you can not contact people on your friends list.
    Seems kinda weird when their target audience seemed to be young adults.

    Liked by 10 people

      1. You’re obviously not looking hard enough then. I’ve got 6 games already with a 7th at the end of the month and two more later in the year. By year’s end my Switch library will outnumber what the Wii U gave me its whole life.

        Liked by 4 people

      2. Well I got Zelda on the Switch as a launch title not on my Wii U because I was ready to give the fucker up (it’s in the living room now). Other than that Mario Kart and DK are my only Wii U ports. Currently having a blast going through DK again. My other games are Mario + Rabbids (new DLC this month!!!), Mario Odyssey, DOOM, and later I’ll be getting Crash, maybe Wolfenstein, Spyro if it comes, Smash, and Let’s Go! Pikachu to ease back into Pokémon. Then we have any possible E3 surprises this year. Prime 4 is a given whenever it comes.

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      3. ok, what new games are there? Splatoon 2 (in not paying for online so thats an automatic skip for me), arms lol, fire emblem warriors shovelware, mario and rabbids: kingdom battle not for me, mario odyssey dont care about mario anymore, xenoblade 2 didnt like xenoblade x so pass.

        What about this year so far? Kirby dont care, labo lol and mario tennis shovelware.

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      4. Yes, I never used Wii U chat, because it was a pain to use. I was hoping they would improve it.

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      5. I meant text chat. Just opening it was a minute long loading.
        I used voice chat couple of times while playing RErev, for other games didnt really bother with.

        Liked by 1 person

      6. Gotta luv when a good portion of Wii U owners are so pessimistic. kek. (already own over 30 games on my Switch compared to 17 total on my Wii U in its lifetime, so im a lil optimistic for Switchs future but im not gonna hav big expectations)

        Liked by 1 person

  4. Just wait- when they show off Smash Bros Switch, Metroid Prime 4, and whatever other big projects they have (fingers crossed for a new F-Zero), their stocks/ratings/whatever the hell this is about will shoot back up again tenfold.

    Liked by 7 people

  5. ” people are concerned Nintendo doesn’t have a pipeline that will wow investors”
    I’m afraid they won’t have a pipeline that will wow ME. It’s been a long time since Nintendo has wowed me. Breath Of The Wild was the last time. But absolutely nothing since has wowed me. I’ve been losing faith in Nintendo lately. Especially when I see that crappy $80 cardboard they recently released. Yes, LABO. Stupid name as well.

    I’m not even anticipating E3 this year like I usually do. When new amiibo are the only things Nintendo reveals that I get excited over, there’s a problem.

    Liked by 2 people

    1. Setting the bar at BOTW is pretty high, don’t you think? There are many people who consider that the greatest game in perhaps the greatest series of games of all time. To expect that type of output on a frequent basis seems a little unfair. Besides, who has put out something at that level since March ’17? I mean Sony put out God of War to near universal acclaim, and there was Super Mario Odyssey – another highly rated game from Nintendo. I mean, if you said, “I’m not looking forward to the new Yoshi game because it’s been a long time since Nintendo put out a good Yoshi game,” that would be fair as it has been over 20 years. But you lost patience with them because they haven’t put out a game of the year contender in six months.

      Also, Labo is for kids. They told you that at the beginning.

      Liked by 6 people

      1. Using BotW is not setting the bar THAT high, actually. There are quite a few people that feel BotW could have been even better (myself included.)

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      2. I see your point, but it has NOT been over 20 years since Nintendo made a good Yoshi game. Have you played Yoshi’s Wooly World? I LOVED that game, and I’m actually looking forward to the new one on Switch. Super Mario Odyssey was a huge letdown (for me). Like every Mario game these days seems to be. LABO may be for kids, but those insane prices sure aren’t kiddie prices. Those prices are uncalled for.

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      3. @infinite I agree about BotW its one of my least fav. Zelda titles. Its still a good game and will replay it……eventually, but for now I still prefer all the previous titles.

        Liked by 1 person

      4. No denying it’s a good game. I just wish it was a great game. I’d personally rather play Wind Waker again as it’s still the best Zelda I’ve played to this day. (And one of the more darker entries in spite of what the artstyle would have people believe.) I’ll return to it some day, too, since I never got the chance to beat the story expansion of the second DLC pack.

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  6. Seriously, though this doesn’t really matter too much, stock price changes don’t affect a company. None of the money when someone buys Nintendo stock goes to Nintendo, it goes to the previous stock holder. It’s a secondary exchange. The only reason you want to see a high stock price is that it indicates that profitability of a company is expected to be high.

    Liked by 3 people

      1. True. It’s more important than people realize since Nintendo IS a publicly traded company. If the majority stock owners suddenly unite & want to oust the people that want Nintendo to focus on gimmicks instead of power, Nintendo could change drastically from what they are right now.

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      2. Or worse, the ones in love with money from a shitload of horrible mobile games for suckers that gladly pay for microtransactions out the ass could become majority stock owners & turn Nintendo into the Mobile King of Gaming instead of possibly one day becoming the Console King of Gaming. *shudders*

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    1. A Wii U 2.0 that came play Mario Odyssey, Metroid Prime 4, Bayonetta 3, Smash 5 and whatever the heck Pokémon 2018 will be…. Hell yeah, it is more than worthy already.

      Liked by 5 people

      1. I wouldn’t go so far as to say it’s a garbage, but it’s definitely not the direction i was hoping the company would go. The complete lack of dedicated leaps in terms of system power and features is astonishing, its literally like getting by with the bare minimum, just because they can.

        Liked by 1 person

      2. No amount of arguing would make you change your mind or vice versa, so you really have to ask whats the point. You’re on what is essentially a fan site and it’s going to attract a lot of fans. If you’re hoping to change someone’s mind, you’re not doing it in an effective way. If you want to find someone who agrees with you, you’re not in the best place for it. Is there any benefit to wallowing in negativity, trying to bring other people down with you? If Nintendo isn’t doing what you want, sit out (I did last generation). You’re wasting your own time.

        Also, anyone who worries about a couple days of stock activity are doing it wrong.

        Liked by 1 person

    2. Sounds like you should be on a different site bud. Maybe sony or Xbox , Nintendo is all about 1st party ips that everyone knows. Once in a while they’ll throw something new out there but they are few and far in between. Sounds like you don’t fit in to Nintendo’s target audience anymore.

      Like

      1. Actually, Nintendo might be the large game company that puts out the most games with new IP:s. For every Mario, Zelda or Metroid game there is always something else like Splatoon, Arms or Snipperclips.

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      2. There is a lot of shit I hate Nintendo for doing but I still care. Same goes for skeletons420. We are on the right site whether the 100% Nintendo loyalist puppets like it or not. If the day comes that we are gone from here, then you should be worried because that will mean we don’t care anymore. Even the trolls care in some twisted way (though ones like Church will vehemently deny this.)

        Like

  7. FIFA 18, Dark Souls, Doom, Sonic Mania, Street Fighter, Smash Bros, Skyrim, GTA V (rumoured), Octopath Traveller, LA Noire, Mario Odyssey, Bayonetta 3, BOTW to name a few and console barely a year old. That’s good going so far. I’m sure Nintendo have more to come and more third parties will want to get on board with nearly 20 million units sold. They would be mad to ignore it.

    Liked by 2 people

  8. The major problem I see with the switch right now are the late ports honestly. Doom, Dark Souls(even as a big fan of this series), skyrim none of those moved me to purchase a switch. Really I’m buying one for octopath traveller, botw and monster hunter that’s about it. Until I see more from series like shin megami tensei, fire emblem, and metroid prime i’m keeping little to no excitement about E3. As for the stock drops it’s all about whether or not Nintendo will have a good showing especially with their online service. Sony and Microsoft have invested a lot to make their services good and still could do much better. Nintendo needs to be willing to invest otherwise it’ll just be a flop.

    Liked by 1 person

  9. I need solid one piece Switch xl for Only handheld playing :D
    Xbox and Sony still release new versions, slim or pro. I like give mine money for new nintendo products but Only 3dsxl and normál Switch i out there :(
    Need new Switch versions! Bigger, better, more collours (n64).
    Need n64 mini and gameboy, ds mini.
    After 600 hours of Switch skyrim (70% complete only, handheld only) i need rest and play donkey king tropical freeze but how i play next? Need 2D Mario from wiiu. Need wind waker and twilight princess (double pack?:) for Switch. I like buy for 60 eur, no problem..

    Like

    1. Please stop asking for remakes. This only positions the Switch as a lazy system and it reflects badly on Nintendo especially at such an early stage of the Switch system’s life cycle.

      All effort should be focused on new IPs with very few exceptions for Wii U ports that are considered the creme of the crop like Tropical Freeze.

      Maybe 4 years down the line Nintendo can look at porting options for a few select Wii U / Wii / GC titles for port and remake.

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  10. The Switch is doing fine. I’m sure all companies have a small dip once in awhile. You’re all so dramatic. I’ve been online for so long and if I had a dollar for every bit of news like this that resulted in ” Nintendo is doomed” response, I’d be real rich right now. Yet here we are AGAIN with Nintendo still alive and doing their thing.

    Like

  11. gamingfan2009 is a complete idiot. “If I don’t care about the game, then it does not exist” How old are you? Only children have such childish methods of thinking.

    Like

  12. It makes me laugh to see people blaming the QoL cancellation for this. Like how others pointed, the dip is probably because of several factors including:

    – Pkmn LG: despite playing like a core game and a genius idea to bridge the gap between Go and main series Pkmn, the announcement was not very impactful. It just did not have the same effect as BoTW and Oddesey even though pkmn is considered as big as those two.

    – E3: lack of indicators for big games to be announced during E3. Yes we are expecting more info on Yoshi, Bayo 3, Metroid Prime 4 and Smash 5, Star Fox Racing (?) but how many of these do you think will see the light in 2018? Probably 1 or 2 titles. While then rest of the event will focus on promoting Mario Tennis Aces, Splatoon Octo expansion and shovelware.

    – paid online service with sub par features that are relatively inferior to the competition.

    Liked by 1 person

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