News Article

Following Wii U Unveiling, Nintendo Shares Drop 10%

Posted by Trevor Chan

Iwata: "It's very strange."

Much like the 3DS, Nintendo is adamant that Wii U has to be seen and experienced first-hand if it is to be understood. Could this be the reason why Nintendo shares took a plunge following the new console's announcement at E3?

In the two days following Nintendo's E3 conference on Tuesday, shares dropped by almost 10 percent. Nintendo president and CEO Satoru Iwata was reminded of the mixed reaction that Wii was faced with when those who hadn't experienced it failed to realise its potential. Although Wii U was undoubtedly one of the highlights at this year's expo, Iwata finds the drop in Nintendo's stock strange, to say the least:

Honestly speaking, the reaction to [Tuesday's] presentation and what I heard from people I met and the mood of the convention did not chime at all with what happened in the stock market... It's very strange.

When Wii launched in 2006, Nintendo shares tripled in the following year but as of Friday, stock is down 0.9 percent at 16,310 yen.

Iwata is keen to point out that Wii U is not just a console with a tablet peripheral and when it launches next year, Nintendo hopes to convince the world that Wii U is for all types of gamers:

"In the end, it is easy to get the mistaken impression that this is just a game console with a tablet... People who came to the presentation and tried it out have understood very well that it opens up a lot of new possibilities. But people who have not tried it will find it hard to believe that this controller will change things... At the moment, there is a barrier between the Wii, which is seen as for casual users and the other companies' consoles, which are seen as for core gamers. We are questioning whether that barrier needs to be there...

[via reuters.com]

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User Comments (54)

Malkeor

#3

Malkeor said:

@3 Well that's because Iwata stresses that it's all about the controller.
Sure you have HD graphics with the console, but that's it I mean that's not really important compared to what he's showing you. The console is basically invisible. He says this somewhere.

BUT it would indeed be better to know about the online system, menu interface, features, and if they continue the "channel" trend.
But that info is going to steadily stream to us as time rolls along.

Don't forget this press conference was just the simple unveiling of the console, and the highlight is of course the controller. Yes there could have been a little more info to get people excited, like at least SHOWING the console then getting on with the controller. Also they could have shown us a 1st party game and how it works, heck even a 3rd party game to show you why getting it on Wii U is better than getting it for the PS3/Xbox360 (can't ever stress that enough).

J-Forest-Esq

#4

J-Forest-Esq said:

@3 @4
Mr. Vonseux has a point though. For a good 20 mins after it was unveiled at E3 I was wondering whether the new controller was for the Wii. After all, it's got the name "Wii" in it, and a picture of the console itself never appeared. Fortunately enough, my incredible intellect managed to decipher just what exactly was going on, but those who didn't follow E3 in such detail may still be bamboozled.

Malkeor

#5

Malkeor said:

Yeah but I thought they had a couple of pictures around. Rest assured there is a picture of it right now on the Nintendo website :P
Just during the conference, if you didn't pay close enough attention I can see why people would be, initially, confused.
Actually if you looked close enough in the concept video during the conference you can see the console laying there.
I think anyway....I'll have to view it again because I was wondering.

I KNEW this was a new console, but at the end I wondered why they didn't show it.

skywake

#6

skywake said:

The fact that there is a "U Draw" tablet for Wii ATM didn't help things. I'm sure if I had seen the conference without following the news nearly religiously beforehand I would've thought it was a tablet accessory rather than a new console.

Until they showed the HD Zelda and HD console ports...........

TKOWL

#7

TKOWL said:

Pretty obvious why the sales dropped. Nobody wants to buy a console that is going to be obsolete by next year.

madgear

#9

madgear said:

Yeah - as a massive Nintendo fan even I felt the Wii U looked like crap. Basically they announced everything I didn't want from the machine - especially since they included ANOTHER controller. So, for basic play, you now need this new controller, wii remotes, nunchuks and classic controllers.

I guess I was hoping the touchscreen to be incorporated into an evolved wii remote along with support for GameCube pads. The rumoured specifications also seem below what I'd expect - at least double the power of the PS3. I know graphics arn't everything but I can't see many people who already own a PS3 or 360 getting excited for this at all.

Spoony

#10

Spoony said:

I have spoken with a few people that thought the controller was the new console. As much as I love Nintendo, I can admit that I think the reveal was a bit sloppy. Also, this controller detracts from what made the Wii so great and I can only imagine that it will cost a pretty penny. Of course time is going to tell on this new console but I don't think it's strange that the stock dropped. When you confuse your' market why wouldn't it?

HiroshiYamauchi

#11

HiroshiYamauchi said:

Nintendo should make a new conference ASAP showing the console, hardware details and more content. For those who weren't at E3 and hadn't the oportunity to try the new console, definitely is hard to have a solid opinion about the new console.

PSICOffee

#12

PSICOffee said:

I'm not surprised. Nothing about the Wii U is particularly exciting. The 3DS had a great reveal with a funny video to boot. Maybe it's because they kept the name "Wii" in this new consoles name, which makes people think they're going to get the same slap dash 3rd party support and all the other reasons people hate the Wii. Everyone loved the DS, so the 3DS success is no surprise, and I already have 10 games I want on it and I don't have the system. Not everyone loves the Wii, so this new system isn't a complete change from the past.

jbrodack

#13

jbrodack said:

Well they are stressing how cool the controller is.... yet there is only support for one controller. It seems like they didn't really think the whole thing through. Yeah, you can use wii controllers but then the other players don't get the new experience they have been hyping.

Also, the controller is just too big. Maybe if they made it smaller it could be able to have at least one more controller. This seems kind of like a cool evolution of the vmu on the dreamcast but having support for only one and having it that size just seems like a half baked idea.

Real_Messenger

#14

Real_Messenger said:

Fools!!! They Don't see the fact that now!! with the Wii-U That the possibilities that we wanted before! such as 2 vs 2 local(with no slow down) and separate processors would open up more expansive battles.
Hence the Whole Metroid Demo

or 4 vs 4 online from console to console is now finally possible. using multiple processors. (think about it duo in the system and duo in the controller)

Sony will copy this idea with the psp VITA along with the PS4
Nintendo knowing this, didn't give off the Main Concept, instead, making it Broad.
FOOLS!!! i say FOOLS!!

komicturtle

#15

komicturtle said:

Well, all I want Nintendo to do is to provide Sakurai with a huge team to work on Smash Bros. If they don't, it may take 5 years to even finish it for both 3DS and WiiU :(

hal

#16

hal said:

If Nintendo was able to make speculators that nervous, even with their reputation, then it's a good sign. It means they're, again, building and creating a new market for themselves.

DestinyMan

#18

DestinyMan said:

Wall Street probably thinks that because of this, the Wii will become obsolete. Nintendo ought to tell them that it won't be for this year and that they should get the Wii U message across. From a regular consumer's viewpoint instead of a gamer's, it does sound like the Wii U is more of a controller than a totally new console. I think the one thing Nintendo should've done during the conference was talk about the hardware of the console itself as well as as the controller. But, things will work out in the end.

Dorkvader

#20

Dorkvader said:

First off i think the Wii U is going to be awesome, Second the Tokyo Game convention is coming up in a few months giving them time to prepare to show more of what the system can do and what games to expect :)

wanderlustwarrior

#21

wanderlustwarrior said:

It's not strange at all. Their presentation's structure issued death tolls for the Wii, and more subtly for the DS. The 3DS will have a second wind in a couple months, but the key piece, the WiiU, is still relatively far away with few details (which to me made that part of the presentation seem rushed).

All of that seems to add up to "sell a bit now, buy later".

Omenapoika

#22

Omenapoika said:

Wii lured so many people into games that the next console must be called Wii U, so that it would seem a continuation rather than a new thing. Wii has such a heavy name with good sides and bad sides to it, that Wii U will just continue the movement. Nintendo's hopes are to fix Wii's downsides to make the Wii-name sound better for this generation and the next.

Nintendo Entertainment system -> Super Nintendo -> Nintendo 64
Gamecube -> ??????
Wii -> Wii U

Doma

#24

Doma said:

As others have said; they failed with its name and the fact they showed/told almost nothing in regards to this new system apart from the controller. The controller itself wasn't anything to get excited about, being oversized and gimmick-filled.
Also, there's nothing left for the Wii now, only SS and bunch of mini/party game rehashes. It's just about dead.

crazyj2312

#25

crazyj2312 said:

I was hoping for a "new" console. I wouldn't have cared if it wasn't backwards compatible. I was hoping Nintendo's return to the game would be a bit more subtle than a big ass tablet. It would be cool if it was an accessory, but as a main component its kind of deters me from the whole thing.

Plastifish

#26

Plastifish said:

Some people are never happy. What is so confusing about this? We asked for HD. We asked for a controller where we didn't have to jump around the room to use.

I know many people who believe the Super NES to be the best Ninty console. That's a carry on of a 'name'. That had better graphics. That had a controller that allowed for more options.

I think Nintendo just took what worked well and didn't from their last console and moved on. (Obvious influence from the DS. If you sit back on the couch and look over that controller it will be a mirror image.)

Overall, I'm happy with the decision and don't care about the stocks. I think this looks like a long-life system. They better get the on line right, though, if they want to expand the audience.

TrevorTheChan

#27

TrevorTheChan said:

@madgear - Why are you moaning about a new console being packaged with a new controller?

EDIT: As for stock, they go up and down. I'm sure this dip is because of how little Nintendo has actually revealed about the console. Watch Nintendo's stock rise again in the coming weeks/months.

madgear

#28

madgear said:

I'm not moaning about a new controller but a new EXTRA controller. I was hoping it'd be an evolution of the wii remote with a touch screen, not something entirely new. Generally you'd only have one controller for basic play - the Wii U has three now!

Link-Hero

#29

Link-Hero said:

Nintendo did not reveal the WiiU well. For one thing, they barely showed or mentioned the console. Thanks to that, it caused all sorts of confusion whether it's was a controller for the Wii, or for a new console. The only way to know was if you paid real attention to the videos they used to reveal the WiiU, or if you read articles on popular gaming websites.

So confusion is the reason for the stock drop. I believe that once the stockers get more information about the WiiU, the stock should start to rise back up.

I really doubt the WiiU will fail. There are so many possibilities they could do with the controller that could really attract the “casuals” (hate that word, along with “hardcore”) over to the new console.

tweet75

#30

tweet75 said:

i think the stock drop may have little or nothing to do with the wiiu. I think it was sonys announcement that the NGP will sale for the same price as the 3ds.

Link-Hero

#31

Link-Hero said:

@tweet75

No, the stock dropped right after Nintendo revealed the WiiU. If NGP was the reason, Nintendo's stock would of dropped after the NGP was revealed.

wanderlustwarrior

#32

wanderlustwarrior said:

Considering history, that's not really much of a reason to sell Nintendo stock, it's just a reason to look closer at buying sony's.

@madgear: this controller does everything the wiimote, classic controller and nunchuck can do combined, except move in two different directions simultaneously. Only difference is the shape.

And considering the price of those controllers, and expected price of this one, this one woud have to be above $80 to surprise me. And wouldn't any new controller be a new extra controller?

CowLaunch

#33

CowLaunch said:

It may well be groundbreaking when it launches, but lets be honest, it does just look like a Wii update. Appearances can be deceiving, but that is the current appearance. My friend who read about it thought it was just a controller update when he saw it. Let me assure you, he isn't stupid, but rather is mostly busy working and studying. More work needs to be done by Nintendo to show people its not merely a minor improvement, but I'm sure they will. It's only just been announced after all.

Mandoble

#35

Mandoble said:

True, NGP price and performance might be the most important reason. 3DS was born already dead, Nintendo is killing the Wii and Wii U will hardly be able to compensate, and if it does, it will be already too late. I would say a share drop of only 10% is actually quite good news for Nintendo.

Henmii

#36

Henmii said:

"Iwata: "It's very strange."

It's not strange at all. The stock market sees it as a tablet controller, and they think it's very strange to have a handheld as a controller for a homeconsole, when there is also a different handheld (3DS).

I also think it's a strange idea that if I want to stay in the loop of Nintendo I have to buy not 2 but 3 devices. That's how it feels!

  • we don't know if the wii audience jumps straight on the wii u. Take the 3DS for example. Sure most people think the 3DS is to expensive, that's a big reason why it isn't a succes yet. But there is also a different reason: People seem to be very happy with their current DS and really don't feel the need to buy a new device. You would expect that Nintendogs 3DS and Pilotwings Resort would attract those casuals and non-gamers but they think: "I am fine with my current DS"
    Of course the DSi being still around doesn't help either.

Here is my advise for Nintendo regarding wii u: Don't make it to expensive, get the old wii immediately out of the shops, and get the wii audience in the mood to buy a wii u.

"True, NGP price and performance might be the most important reason. 3DS was born already dead, Nintendo is killing the Wii and Wii U will hardly be able to compensate, and if it does, it will be already too late. I would say a share drop of only 10% is actually quite good news for Nintendo"

The NGP price was a big suprise, and forces Nintendo to not just lowering the price of the 3DS a little but a lot (not 50 but at least 100 dollar/Euro's). If Nintendo does this and gets the casual and non-gamers to go from the DS to the 3DS, it can be saved. For traditional gamers there are already some enticing things in store for the future: mario bros 3d, paper mario, mario kart, luigi's mansion 2 and kid icarus.

As for the wii u: If the price is right, if Nintendo can entice the wii audience, if they can attract the hardcore and if they deliver some strong hardware that isn't outdated in a few years there sure is a bright future for it. Nintendo certainly is not doomed yet!

moosa

#37

moosa said:

@37 The fact that the 3DS isn't annihilating every sales record doesn't in any way translate into it being unsuccessful. The Wii is obviously one of the most successful consoles ever, and your prediction about the Wii U is entirely groundless. In no way is Nintendo "in trouble" as a company. Your combination of pessimism and acting like you know things that you don't is a bit irksome. Maybe lighten up a bit?

AVahne

#38

AVahne said:

Gotta save up, gotta get a 3DS by the end of this year, then save up for the Wii U

Capt_N

#39

Capt_N said:

1. (The) Wii is in it's last big year, imo. Sure, it may have support into next year, but since a new console has been announced, it is in it's last "big" year, & by that I mean it will next year be considered older generation gaming tech.
2. 3DS is too expensive atm. Sure, it has better horsepower than a DS, or DSi, but it is an expensive dedicated piece of gaming tech. Not to mention, there are many ppl, like myself, who are on the fence about getting one, for various reasons, namely the 3d hurting the eyes in the long run, & the cost.

Edwrd

#41

Edwrd said:

if the announcement is Wii U release on July 2011, the share might go up, but even then is it a sure thing? Probably other factors influenced the drop in value.

Blaze

#42

Blaze said:

I son't think it's anything to worry about, but if Nintendo really wanted to show the Wii U off as something different, they should have gave it a new design. From the few glimpses i caught of the console itself, it looked pretty much ike a Wii, they needed to make it look like Wii U was a brand new concept, not a Wii upgrade.

LEGEND_MARIOID

#43

LEGEND_MARIOID said:

Yeah, happened when the Wii and DS were announced - not chuffed. It ought to sell well when it comes out next year and , all things being well, I'll be one of its buyers

TheDarkDee

#44

TheDarkDee said:

@Almost Anybody who's posted about Wii U Can't you guys actually be exited for U other than its name? though it is terrible :D And i doubt any of you have tried it. (including me) So yeah. Don't bash on stuff ya have'nt tried. -rob1nfly

MeloMan

#45

MeloMan said:

This stuff means nothing to me. I will say it's probably happening because the investors probably realize that the WiiU isn't goling to market as hard to the casual gamer as the Wii did so they're pulling up their stakes on that camp. From that, if the WiiU is set to be marketed to ALL types of gamers, the investors are probably saying "hmm... Sony and Microsoft have that on lock... we'll have to wait and see if Nintendo can steal some of the all around gamer to make the WiiU worthwhile to invest in..." or something to that effect. Who knows, who cares, all I know is I'm getting one.

castor

#47

castor said:

It IS a new console, but Nintendo just don't want you to sell or throw away your Wii, cause Wii's stuff will still be useful to Wii U... like the Wiimote, Wii Balance, Wii Games... so, the Wii U is not a Wii acessory, but the whole Wii is an acessory to Wii U...

Infernapeking

#48

Infernapeking said:

people seen the console after the conference and the video that shows how the controller works has the console next to the TV when the guy came in switch it to baseball. The console was laying flat and has round side. The Controller really what matter to them. Console only plays the games while the controller handles pretty much everything else.

JustanotherGamer

#49

JustanotherGamer said:

So the stocks have dropped 10% I'd be worried if this happen if the Wii U had already launched. Things will pick up in April to November 2012 when the Wii U does launch. I imagine that Christmas 2012 the Wii U will be difficult to find as some other Nintnedo consoles have been when they Launched Wii, N64 SNES, come to mind. Stocks will increase next year...

Kid_A

#50

Kid_A said:

Two disclaimers:
A) I know nothing about the stock market
B) I'm a teenager, so I really don't know anything

That being said, here's what I think.
The console simply didn't have a good showing. That was the problem. The 3DS unveiling BLEW PEOPLES MINDS. The Wii U? Not so much. I don't think it's the tech that's the problem; they simply needed 1) More games, and 2) a few live, onstage demos to show how this thing works.

One of the things that made the Vita so successful at its unveiling was the great onstage demonstrations Sony showed--and these demos not only showcased what the system could do, but they showed actual games, not just one-off tech demos..

I think the Wii U is a great idea, the kind only Nintendo can get away with. I also think they need to do a better job of showing us just what exactly this system is. Also, make the controller look sexier. I'm sure it plays great in reality, but it's an ugly thing to look at.

Gamer83

#51

Gamer83 said:

The controller looks clunky and very uncomfortable to use but to be fair, there is the option to use the remote/nunchuk and classic controllers so the issue of control can be solved one way or another if you don't like the one that comes with the system. The thing that would concern me is that while it's great the Wii U seems to be getting support from third parties, there isn't any compellig exclusive third party content. For example two of the games that stood out were Ninja Gaiden 3 and Batman Arkham City. Both great for early Wii U adopters who don't own 360 or PS3, but as somebody who owns both those consoles and will have access to those games months in advance what reason is there to hold off for the Wii U release and pay the price of not only those games but a new console? I've bought every Nintendo system except Virtual Boy so I'm sure I'll get a Wii U at some point but I hope Nintendo does something soon to give me a reason to want to get on launch day as opposed to waiting at least 3 or 4 years after release.

rjejr

#52

rjejr said:

Fro those complaining about the WiiU name being too similar to Wii I present to you - Playstation, Playstation 2, Playstation 3.

I watched the presentation live on G4 and there was never any doubt in my mind the WiiPad was a controller as the HD video just isn't possible on the Wii.

The stock probably went down b/c NIntendo is putting out a new console next year that is graphically equivalent to the current PS3 and Xbox360 and therefore little reason for people to buy one now and less reason to buy after the PS4 and Xbox720 release a couple of years after that.

For me the big push has always been an HD Wii with competent online and the big selling point for this console will be if Nintendo is able and willing to offer the same transfer you can get on a DSi to 3DS. I will pay $300 - probably only $250 though - just to upgrade my Wii to a PS3 quality system if I can move all my VC and Wiiware games.

JimLad

#53

JimLad said:

I agree with everything Kid_A said.
It's obvious they wern't really ready to show it.

jediknight

#54

jediknight said:

No surprise. Nintendo mistakenly releasing Wii-U directly after the christening of the 3ds doesn't seem like it would suffice to their needs. I think it was unorthodox and premature of them to do that. It's the first time Nintendo has done that, and hopefully the last time also

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