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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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.

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.

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$...

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.

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

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.

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...

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!

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...

Negative Nancies. Every time I've played a game with a GBA / PSP as a secondary screen, good local coop/multiplayer gameplay? has rocked so much better then I expected...which is what the wii was awesome at, and will be what the wiiu could be awesome at.

The screen is single-touch, so it's cheap. The technology for the rest of it exists in off the shelf parts, most of which they're already having manufatured so it will be cheap. Not as cheap as a wiimote, but you're not supposed to buy 4 of them. The hardware in the WiiU itself is superior by a significant margin, if reports of the tech demos are to be believed, to the existing generation sony and microsoft products, but knowing Nintendo it wont be as cutting edge as the 360/ps3 were when they were first created so it's price will be afordable too.

There is a LOT of opportunities here, and they are pushing third parties hard, including what sounds like good re-realized multiplayer. We know next to nothing about the actual specs, so it's too soon to say anything definitive, but jesus the negativity of such a good idea - is depressing

my guess is a lot of the price dropping on the stock comes from the fact that a large portion of the industry thought nintendo would be pushing the new wii out this holiday season. The delay is going to hurt their numbers, and in extension their stock sales. That said, I'd expect the 3DS's revived sales to pick up.

And calling nintendo sega -- if nintendo went to making ONLY ds's they'd be doing significantly better then 4times the sales market penetration wise then sega was when the Dreamcast died out...so... no.

tientheking said,
Sorry but 4.6% on Wednesday and then 5.6% on Thursday is really less than 10.2% in total, right?

Yes, 9.94%. Still bad.

tientheking said,
Sorry but 4.6% on Wednesday and then 5.6% on Thursday is really less than 10.2% in total, right?

I was thinking the same thing

Nintendo is going the way of Sega. The WiiU will be their Dreamcast.

I only hope that My console manufacturer of choice at that time gets the exclusive IPs.

Allowing their #1 third party developer to be purchased by Microsoft was just one of a long line of mistakes made by Nintendo.

Back to making playing cards I think.

I sure hope your being sarcastic. Everybody said the same thing with the wii and the ds.

PS what has rare done lately? If I am not mistaken didnt nintendo drop rare?

dotf said,

Allowing their #1 third party developer to be purchased by Microsoft was just one of a long line of mistakes made by Nintendo.

Considering the fact that rare hasn't put out a decent game in the many years since MS taking them, I'd say Nintendo didn't lose a thing when they lost them.

dotf said,
Nintendo is going the way of Sega. The WiiU will be their Dreamcast.

You can't ever say such thing about the Dreamcast. The Dreamcast had a lot of potentional to become the best console. It was the first console to have real internet multiplayer, it had a mini console right in your controller already (memory unit), it had many great games that people to date still love to play. The only bad thing about the Dreamcast was the timing. PS2 and xbox just had better graphics and that eventually made the dreamcast die.

The WiiU is just another PSP2 with the ability to use your television as a screen. Nothing less, nothing more. And sure you can see the display can be used to show data like health and stuff. But such thing was already tried on the dreamcast, didn't work. Devs just don't see the point. Same with the DS, how many games just use one screen?

majortom1981 said,
I sure hope your being sarcastic. Everybody said the same thing with the wii and the ds.

PS what has rare done lately? If I am not mistaken didnt nintendo drop rare?

This. Too many people thinking they understand what casual gamers and kids want. I don't think it ever graces their minds that they might not actually be Nintendo's target audience any more.

ZenVenT said,
Apparently i'm not the only one who thinks it looks stupid.

Nope. The Wii U is what Nintendo should have given us 5+ years ago. And don't get me started on the "controller".

Elessar said,

Nope. The Wii U is what Nintendo should have given us 5+ years ago. And don't get me started on the "controller".

Lol I don't know what they where thinking with that controller. Its got to cost like $200 alone. I mean they even have a damn webcam in it. I have no idea what their thinking. The only rest they was always on top was busy of their price and their appeal to the younger/children gamers.

Biglo said,

Lol I don't know what they where thinking with that controller. Its got to cost like $200 alone. I mean they even have a damn webcam in it. I have no idea what their thinking. The only rest they was always on top was busy of their price and their appeal to the younger/children gamers.

200? Um..aha. Sorry, but the touch screen is the only non-stock part that nintendo isnt already manufacturing en-mass, and I know for a fact single-touch 6.2" screens aren't that expensive when you're ordering millions of them.

Probably see them for $99 I bet. Still way too much for a controller, and I'll be damn well surprised if it's priced better than that.

Biglo said,

Lol I don't know what they where thinking with that controller. Its got to cost like $200 alone. I mean they even have a damn webcam in it. I have no idea what their thinking. The only rest they was always on top was busy of their price and their appeal to the younger/children gamers.


Pretty sure they said that the controller is like $80, and the only reason you would have to buy one is if the one you got with the system broke seeing as you can only use one at a time.

Jose_49 said,
But you will still use the Wii controllers for playing the games...

Yes, Nintendo said, as shown in the conference, that the Wii remotes can be used in conjunction with the Wii U controller.
So I would assume that is for any Local MP gaming for things like Mario Kart, but as far as we know currently all Wii U games will require you to use the touch controller when playing on your own.

ZenVenT said,
Apparently i'm not the only one who thinks it looks stupid.
Here we go with the "it looks stupid" talk, probably the same crowd that still goes on (and on) about the Move controller looking like a dildo.

I wouldn't rule anything out just because some think it has a novelty factor or looks different. The Wii had its critics before it was released labelling it a novelty but look at how well that did.

LordBattleBeard said,
Here we go with the "it looks stupid" talk, probably the same crowd that still goes on (and on) about the Move controller looking like a dildo.

I wouldn't rule anything out just because some think it has a novelty factor or looks different. The Wii had its critics before it was released labelling it a novelty but look at how well that did.

?? are you kidding? It looks absolutely stupid! You play a game on a screen with a 6 inch screen controller?? it's like waving a tablet at your tele. Obviously I still need to see it in action but it smacks to me of just trying to be different because you were last time.

well the 3ds has been flopping, guess investors have no faith in this either...

but it's also normal for stock prices to go down after they make big product announcements (look at apple's stock during a WWDC event or an iPod/iPhone/iPad event.

rajputwarrior said,
well the 3ds has been flopping, guess investors have no faith in this either...

but it's also normal for stock prices to go down after they make big product announcements (look at apple's stock during a WWDC event or an iPod/iPhone/iPad event.

I dont think its fair to say the 3ds is flopping i think its just starting and half of the game are not even out yet. just wait until xmas you will be sick of how may 3ds games are in gamestop lol