News Article

Lift in Chinese Console Ban and Market Fluctuations Contribute to Sizeable Nintendo Stock Increase

Posted by Thomas Whitehead

Will it be sustained?

After the Chinese government confirmed last year that it would be lifting its ban on game consoles, it became a reality this week. There are still the same hurdles that were highlighted previously, namely that hardware will need to be manufactured in a designated zone and all products will need approval from the country's Ministry of Culture.

Despite a Nintendo spokesman stating that the company is still unsure of its first moves in the potentially lucrative territory's new setup (according to Reuters), the news has reportedly sparked a substantial leap in Nintendo's share prices on the Tokyo Stock Exchange in trading on 8th January. Both CNBC and City Index are reporting an 11% increase in the share value at the close of the day, while a Tokyo-based trader said the following to Reuters.

Nintendo hasn't had a catalyst for a long time, so if it can revive (via) the Chinese consumer market then it would be positive.

As has been the case before, rise and fall in stock price isn't always a reliable indication of fortunes — and the depreciating Yen is also a factor in this jump — but it's certainly a positive for Nintendo that it's a reported two and a half year high. There are challenges, however, as this would be a brand new venture with a major degree of the unknown, stepping into a market and manufacturing system that has largely featured counterfeit and pirated gaming systems in previous years. Nintendo does have the benefit of some experience in China, having previously, through a joint venture, released the iQue home console — which plays ported Nintendo 64 games — and a number of iQue-branded portable systems with limited libraries that go right up to the 3DS.

As one of the most powerful economies in the world — some predict it will become the biggest in the not-too-distant future — China could be a lucrative market, though there is still a substantial demographic in the country earning very low wages. It'll be interesting to see what steps, if any, Nintendo and its rivals take into the territory.

[via cityindex.co.uk, cnbc.com]

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User Comments (26)

Mk_II

#1

Mk_II said:

Nintendo has a big advantage here thanks to the iQue partnership. I hope they can translate that headstart into a healthy share of the huge market.

Volmun

#2

Volmun said:

iQue? ITS iLife! THERE INVADING! - lol joke aside this is good news for moste in china im sure.

Boyoshi

#3

Boyoshi said:

The Chinese Market, I feel is going to be very important in this generation of games.

If Nintendo can get in strongly with the Chinese market we could be seeing strong success of the Wii U and 3ds In China.

Hopefully the iQue partnership will remain strong and bring them a big advantage with the Chinese Market

Volmun

#4

Volmun said:

In the screen shot on the TV on the Left are thay playing Smash Brothers 64? - also is the iQue WiiU difrnt in desighn like the Wii was? Im just curios

XavandSo

#5

XavandSo said:

@Volmun
The iQue Wii's design was different? I heard, like the IQue DSi, it was the same as the worldwide release. I could be wrong.

Peach64

#8

Peach64 said:

Just waiting for someone to update that chalkboard of Wii U saviours to add in 'China'.

Honestly the smart way to release an official console in china would be to modify it and release it without a disc drive, because you're just gonna get then pirating discs if they release them as they are now. It has to be digital only.

WashioYuji

#10

WashioYuji said:

iQue is just the chinese version of N64 iirc

anyway this is massive, If they can dominate that market then its like 30% of the world

FernandoMachado

#11

FernandoMachado said:

China's cultural policies are very restrictive but I feel Nintendo's family-friendly stance will fall really well with them. Can't say the same for PS4/XOnes!

Goginho

#12

Goginho said:

C'mon, Mario is a communist after all :P this will go well with the Chinese government I'm sure.

MkTony7

#13

MkTony7 said:

Get to selling your Wii U in china theres over 1.3 billion people and half could get a Wii U and more then half could get 3DS. I know that iQUE is in China since N64 days with pique Wii and iQUE DS and 3DS but I don't see anyone using it

onlyaman

#16

onlyaman said:

and.... with that bump, I just sold my stock. Thanks China. It's nice to have that Nintendo stock off my brain.

Galactus

#17

Galactus said:

@Peach64 I completely agree. This is a genius answer to this dilemma.

Nintendo could easily dominate this market as China will not be allowing ultra-violent shooters and US army propaganda. In other words 90% of X-Box and Playstation games.

AJWolfTill

#19

AJWolfTill said:

They better be on this! I see no benefit to hesitating about one of the most important economic events in VG history.

ICHIkatakuri

#20

ICHIkatakuri said:

@XavandSo I didn't realise they made an I-Que wii? I know the dsi was the same but like the n64 edition only played a small handful of pre-approved games that had to be downloaded from a pre-approved supplier.

Tender_Cutlet

#22

Tender_Cutlet said:

The Chinese government might prefer Nintendo's family friendly mission statement but as highlighted in the press, Chinese gamers have been monopolisized by PC gaming since 2000 - ie MMORPGs and FPs...neither genre is Nintendo's strong point. I fear Microsoft, with their links here will attempt to mop up.

Another factor is China's 'family planning policy' which has enforced the majority of affluent Chinese families to have no more than one child...a real spanner in the works when you consider 4 player local muliplayer for the whole family is Nintendo's angle of choice!

jakysnakydx

#23

jakysnakydx said:

@Tender_Cutlet umm... yeah the local player thing ismt a problem woth the lack of kids. Especially simce most chinese keep theor circle of friends extremely close in terms of geographic distance. Itll be about brimging friemds over to play. As for Xbox. They are so clueless to the asian marketnits funny. They MAY attempt the 360 there but i doubt theyll see much presence at all. Look at Japan, very different yes but nonetheless a better indicator then nothing

brucelebnd

#24

brucelebnd said:

Nintendo should do very well in China. any video games released in China must pass a censorship board first. China won't allow violent games, so that's a plus for Nintendo.

also China massive censorship of the internet and China relative poor internet speed will also help Nintendo. Nintendo games usually don't require online access.

things could go very well for a company so many investors like to poo poo on. if they sell a few million Wii U's or Wii mini's in China Iwata's long term plan may not look so silly

Zombie_Barioth

#25

Zombie_Barioth said:

Nintendo should be able to do very well over in China. Not only are their games very family friendly, not to mention some of the biggest IP around, but their consoles are also much more affordable than the others. That price difference will make a big difference to a lot of people over there.

I wonder how well something like Monster Hunter Ultimate would do over there since it has an MMO like style, and they do have Hunter Blade and I believe an official MH MMO in the works too.

Blue-Thunder

#26

Blue-Thunder said:

I hope they get their act together in China better than they have in Europe. I still can't buy a white Wii U pro controller one year on and all the Wii U stand and cradles are black even though it's the white ones that are required since they weren't packaged with the basic console. Makes you wonder.

It will be a nightmare for them and it will certainly not benefit western gamers.

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