E3 2011: Nintendo's stock price drops 10.2 percent after Wii U reveal

Nintendo may have revealed the name and the controller for its next generation game console at E3 2011 on Tuesday. However the reaction to the Wii U has left investors cold and as a result that has hit Nintendo's stock price hard. GameSpot reports that on Wednesday, the day after the reveal of the Wii U and its touch screen based controller, the stock price went down 5.6 percent in trading on the Tokyo Stock Exchange. Today's trading day gave Nintendo even worse news as the stock price fell another 4.6 percent. That brings the two day stock dive down to 10.2 percent.

One of the reasons behind the massive stock price drop may have to due to the Wii U's possible price. While the company didn't mention a specific price point during Tuesday's E3 2011 press conference, Nintendo president Satoru Iwata told the Japanese based Nikkei news service that the Wii U might cost more than $250 when the console launches. The original Wii launched for just $250 in 2006. Investors like Daiwa Securities Co. Shuji Hosoi have also told The Associated Press that there is concern that the Wii U won't sell as well as the current Wii console.

Nintendo choose to reveal just the Wii U's touch screen console at E3 2011 despite rumors that Nintendo might offer more of an in depth preview before E3. Nintendo also admitted that at least some of the third party games shown via video at the conference to be supporting the Wii U actually showed footage of those games from other consoles.

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People buy Nintendo consoles because they like their exclusive franchise games like Mario, Zelda and Donkey Kong. They should concentrate on their games instead of silly looking gimmicks.

TRC said,
People buy Nintendo consoles because they like their exclusive franchise games like Mario, Zelda and Donkey Kong. They should concentrate on their games instead of silly looking gimmicks.

Everybody stated the wii mote was also a gimmic. Now look microsoft and Sony rushed to get in on it .

majortom1981 said,

Everybody stated the wii mote was also a gimmic. Now look microsoft and Sony rushed to get in on it .

Well Kinect is rather different, and Sony's lollypop remotes were kind of a joke. Anyway the Wii sold like crazy but it also seems to end up gathering dust soon after. It's game library is kind of terrible and the Wii mote thing was only fun for a while. In the end good games are the most important thing, not gadgets. Plus come on, this new controller just looks absurd.

TRC said,
People buy Nintendo consoles because they like their exclusive franchise games like Mario, Zelda and Donkey Kong. They should concentrate on their games instead of silly looking gimmicks.
how many wii's sold just last year ?

gimmicks maybe but the numbers do not lie

TRC said,
People buy Nintendo consoles because they like their exclusive franchise games like Mario, Zelda and Donkey Kong. They should concentrate on their games instead of silly looking gimmicks.
Or, you know, they could do both.. something casual gamers and kids seem to want.

Teckno said,
how many wii's sold just last year ?

gimmicks maybe but the numbers do not lie


You cant go by numbers. A perfect example of that is WoW, it shows how 12+million people can be wrong all at the sametime. Personally whats killing nintendo is all those trash games and shovel ware. They need to cut that stuff out. Most of those games are so bad I would not even call them garbage but more so the juice off the garbage. Had the Wii been HD and they had a better online system and built-in hard drive for 3rd party support for game patches they would not be needing a new console. As for as the gimmick is concerned ask the people who bought a while at launch and see how many still own and play it.

Gotenks98 said,

You cant go by numbers. A perfect example of that is WoW, it shows how 12+million people can be wrong all at the sametime. Personally whats killing nintendo is all those trash games and shovel ware. They need to cut that stuff out. Most of those games are so bad I would not even call them garbage but more so the juice off the garbage. Had the Wii been HD and they had a better online system and built-in hard drive for 3rd party support for game patches they would not be needing a new console. As for as the gimmick is concerned ask the people who bought a while at launch and see how many still own and play it.
So much hatred...

I don't think price may be that big a factor. Just look at Xbox. It has been the best selling console for past 12 months, except December, due to hardware shortages. If you make a good, unique product, people will buy them even if the price is a bit high.
And with Xbox, so many people buy the Kinect accessories. With an already expensive console!

FMH said,
I don't think price may be that big a factor. Just look at Xbox. It has been the best selling console for past 12 months, except December, due to hardware shortages. If you make a good, unique product, people will buy them even if the price is a bit high.
And with Xbox, so many people buy the Kinect accessories. With an already expensive console!

People bought the Xbox because it had a LOT of games. Sure, if you like Nintendo games, then their console is fine for you, but if you only owned a Wii this generation, you missed out on a LOT. 3rd party support is far worse than it was for the Gamecube.

When you have to own another game system with a Wii just to have some variety, that's when you should be worried. And when investors start thinking about what the price of this must cost when it launches next year, no one is going to bother owning multiple systems, and why on earth would they pick Nintendo when the PS4 and Xbox 720 already have platforms full of content people enjoy.

Most importantly, Nintendo fumbled online and social for the last 6 years and it's going to bite them in the ass sooner or later. Friend codes? Give me a f($)ing break!

Honestly, I think Nintendo let the cat out of the bag too early. Concepts are great, but there are currently a lot of games people are looking forward to with 2011. Who cares what 2011 games will be playable on the WiiU if their console won't be out until 2012? Sure, it might be out in early 2012 for all we know, but who in their right mind thinks anyone will hold off from Battlefield 3 or other games to play it on the WiiU? And can anyone tell me how I can be excited for online multiplayer with the WiiU?!

These questions (and more) are kind of important to me as a gamer, without even getting into the controller. Now, if I was an investor, I'd probably be very worried with this...

The pros and cons of the Wii U aside, what it offers is new, while offering more features and levels of those features (graphics) that the comptetition does. In short, I can only wonder wtf investors were expecting out of Nintendo if this is such a cataclysmic failure in their eyes. Cloning Microsoft of Sony would only be a bigger mistake.

too little, too late...

Tokyo game show its a good place to show what its the console its capable. what the wii u currently is its just another ps3 and xbox 360 with fancy controller

Stock trader activities are neither an accurate prediction of the future nor a meaningful commentary on the present. They're just stock traders.

/owns no Nintendo stuff

smot said,
Stock trader activities are neither an accurate prediction of the future nor a meaningful commentary on the present. They're just stock traders.
/owns no Nintendo stuff

Totally agree. Stock market analysts are mostly clueless about the Hi-Tech industry.

You've got to be kidding me. When the Wii launched, by home console standards, it was considered super cheap for $250. Even in these tough economic times, so what if it's not SUPER cheap? You can't expect them to always be that way.

I wouldn't worry too much about price... I mean, we are talking about consoles released 5 years ago.... Not even dual core processors were vastly widespread. Now, we are having a more powerful machine, with today's standards...

For me... the price won't reach past the 400 US$...

They released a sports game style upgrade to the Wii and they're surprised their stock went down? As someone who has owned just about every Nintendo console, this is weak. They have the same hubris that Sony did when they launched the PS3, but atleast Sony had the good sense to release something that was more than a marginal upgrade.

Davo said,
atleast Sony had the good sense to release something that was more than a marginal upgrade.
Nintendo are sitting on a goldmine with the Wii, they'd be stupid to do otherwise.

BGM said,
no rage throwing your controller!

No joke.. wasn't too worried about my 6 year old playing on the Wii, but as much as I like this new controller design from what I've seen so far, she's not playing on it until she can show two forms of ID, proof of employment and a major credit card first.

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