News Article

Nintendo's Stock Value Creeps Back Upwards After a Tricky April

Posted by Thomas Whitehead

Going in the right direction at the moment

2014 has been a slightly peculiar year, so far, for Nintendo. It emerged from 2013 on the back of a breezy, confident Nintendo Direct in December and positive noises that the Wii U — particularly — wouldn't endure a games drought in the first half of the year. With respect to some download developers that attempted to fill out the roster, the opening quarter of the year was rather quiet for the console aside from Donkey Kong Country: Tropical Freeze; it felt like a bit of a drought to us, though April and May have brought a host of excellent download games and, of course, Mario Kart 8 is upon us.

That's not to say all has been quiet with Nintendo, quite the opposite, and as this is a Holiday at the time of writing — and not much is going on — we've had a little look at how various happenings have effected Nintendo's stock market performance — a key indicator of company health. Don't say we aren't generous.

As we suggested earlier, it's been a wacky 2014 for Nintendo's accountants to handle. There was an enormous spike in share price in early January, linked to various events including China formally outlining the lifting of its console ban. Following that, however, Nintendo shocked pretty much everyone when, prior to its Q3 financial results, it announced a dramatic lowering of sales expectations, particularly for the Wii U. They were grisly figures, and over the space of around four weeks shares tumbled and lost a lot of value; an important detail, however, is that shares merely returned to their pre-bump level, essentially wiping out that crazy increase of early January.

Nintendo, notably, failed to regain much ground after Satoru Iwata gave a strategy presentation — in early February — in which he announced, among other things, a major summer system update for Wii U, DS games for the Virtual Console, a greater E3 focus on NFC (near field communication) and a mysterious new QOL (Quality of Life) platform. As was reported at the time, some investors were clamouring for Nintendo to announce moves into smart device markets, whereas the company simply committed to apps and services on these platforms to drive consumers towards Nintendo hardware.

The past month has shown some solidity in the markets for Nintendo, despite the company announcing financial year losses and posting conservative sales estimates for Wii U and — to a degree — the 3DS. In his post-results briefing Satoru Iwata spoke about short and medium term initiatives helping Nintendo return to profitability, while it was also made clear once again that the company wouldn't shy away from expanding into other areas of business (such as QOL). It was also indicated that Nintendo would produce new hardware specifically targeted at developing countries and new markets, the company also stating that it's looking into its options for China. Notably, Sony and Microsoft have both already announced distribution plans for the Chinese market.

The chart below — via Bloomberg — shows the past month of movement, with a steady trend upward since Nintendo's post financial announcements, while hype around titles such as Mario Kart 8, Pokémon Omega Ruby & Alpha Sapphire and perhaps even Hyrule Warriors potentially helped.

For context, below is the Nintendo stock price over the past year — via Bloomberg again — that gives us a broader idea of its current performance in the financial market. The creep upwards in May is, once again, dragging Nintendo back to what's been a relatively consistent level, but the company is at least currently in better shape than in the immediate aftermath of E3 2013. At that event Nintendo struggled for attention against the presence of the new PS4 and Xbox One, with share value (in Japanese Yen) in that period briefly dipping into four figures.

At the time of writing Nintendo's had a good day of trading in its homeland, closing at 11,855 Japanese Yen, a 2.29% increase over the previous day. While it's pleasing that a steady decline throughout the month of April has moved in the other direction in May, Nintendo's past year has shown that the current numbers reflect a relatively consistent level; if the company gets E3 right and delivers the results it's targeting and pitching to shareholders, that line graph may keep on going up. As this year has shown, however, share value can be a temperamental, unpredictable beast.

For the past year increases, like this in May, have merely been green shoots, so the company will hope for a sustained improvement. Even if it means it's not all about the games, and a little to do with Quality of Life.

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User Comments (55)

Warruz

#1

Warruz said:

Everyone should of snaged nintendo stock after that quarterly statement. Remember folks, invest in what you know!

unrandomsam

#2

unrandomsam said:

That is the same as people going crazy for 2p off petrol ignoring that it has gone up by about 20p in the past few weeks. (If something changes by loads then a tiny change in the other direction is not relevant.)

C-Olimar

#3

C-Olimar said:

The Figurine Platform should keep that price rising. Release a Dillon figure and I'll buy every game compatible with it Ninty!

Funny_Moblin

#4

Funny_Moblin said:

@SecondServing Hey, why are you hating on Donkey Kong? Retro made a trilogy with Metroid, and you people are angry because they made a second game for Donkey Kong Country? That's pretty selfish, and darn I'd be darn happy if they made another one, because we at least deserve a Donkey Kong trilogy from Retro. You people kinda make me wish a Metroid game comes out right at the end of the Wii U lifespan, a well deserved punishment. The selfish part of the Metroid fanbase has got to be the most immature and impatient people.

Nik-Davies

#7

Nik-Davies said:

@Funny_Moblin To be fair, when Retro announced they were working on a project last year. A lot of people's instant thoughts were Metroid. The Wii U didn't exactly need Tropical Freeze, as good as it was. But it needed/needs Metroid. Besides, SecondServing is only making a joke, no need to go bananas :P (pun intended)

Smooty

#11

Smooty said:

Maybe metroid didn't sell that well before, but nowadays people would rather buy a Metroid over a Donkey Kong, because Metroid is violent and is a FPS (Prime series) so... Yeah Metroid would do better than DK nowadays

Andremario

#13

Andremario said:

violence doesn't absolutely guarantee good games. look at cod. It's getting to look more like a madden or fifa upgrade then unique minus the new advance war series

Smooty

#14

Smooty said:

I know violence doesn't make a good game, it pretty much equals good/better sales

unrandomsam

#15

unrandomsam said:

@HaThready None of the violent games did well on the Wii last time. The only real critically acclaimed Metroid game anyway is Super Metroid.

cookiex

#16

cookiex said:

Looking at that graph I'm honestly surprised to see that the stock value never went all the way back down to where it was at E3 time last year, even after the financial report hit.

123akis

#17

123akis said:

wait what!? Nintendo only earned 11,855 yen on May 26th? In british pounds that's £69! that's not a lot!

Realgamer4life

#20

Realgamer4life said:

What Nintendo needs to do is release a FPS type of game that shows off the relevancy of the game pad. They know this I know it and everyone knows it. But I give them props for not just releasing something to be releasing it. I have this feeling when Metroid is released it will be more than what we bargained for. The Awesome part is they already have a jump on VR so I am hoping they take the Game pad and say here is what you can do with a first person shooter. Take the good from Zombie U, Wonderful 101, Deus Ex, Mass Effect and Pikmin 3 mix it in a pot and give me something Magical.

I would love Nintendo land 2 With online play imagine playing those attractions online.

JaxonH

#21

JaxonH said:

@Funny_Moblin
You are correct. There is no equality or rational logic in being perfectly ok with 3 Metroid games in a row, but mocking just TWO games of another franchise.

It has nothing to do with what Retro SHOULD develop. It has everything to do with people's own selfish desires and what they WANT Retro to develop.

They WANT another Metroid (as do I), but they want it more than DKC, so that makes it perfectly ok to see a full trilogy of what they want, but God-forbid we see a trilogy that someone ELSE wants. I hope we DO get another DKC game instead of Metroid, just so we can rightfully call it "fair and square". EVEN THEN, there was Metroid Prime Trilogy, Prime Hunters and Other M. Yet DK fans can't even get the SNES trilogy on VC! It's like a billionaire complaining that a poor man won $5 on a lottery ticket. All those Metroid games we've got, and people complain over ONE stinkin' DKC sequel.

PvtOttobot

#22

PvtOttobot said:

@unrandomsam Except it is an actual improvement. If you look at the yearly graph, Nintendo's stocks have stayed just above and below a relatively constant line. But after Jan 2014 it's a steady decrease, however May's results show an uphill trend that should send Nintendo back on to that constant line. It's really not a 20p 2p situation, but neither is it a 2p 20p situation, Nintendo's just repeating their pattern.
Watch the insults and profanity, please, that was uncalled for — TBD

JaxonH

#23

JaxonH said:

@SecondServing

Hate to break this to ya, but Metroid sells the same stagnant 1-1.5 million in lifetime sales every time. Every single time. DKC Returns outsold the entire Prime trilogy COMBINED. DKC Tropical Freeze will go on to match anything Metroid ever could.

You may not like it, but DKC is popular. Much more popular than Metroid. So no, I don't think announcing a new DKC game would harm Nintendo. On the contrary, it's one of the more popular franchises out there. Probably in the top 20 percentile for best-selling 1st party IPs.

StarDust4Ever

#24

StarDust4Ever said:

Forget DKC returns/ tropical freeze. What we need is 3d Donkey Kong Sequel to Rare's awesome DK64, with tons of bananas to collect!!! :D

Oh yeah, and everyone knows Mario Kart = sales; that's the main reason stocks are going up as investors are buying stock in anticipation of the additional cash flow. ;)

Nintendo will be fine; anyone who thinks otherwise is delusional. :p

Boy, I love being an armchair analyst! B-)

Funny_Moblin

#26

Funny_Moblin said:

@JaxonH Exactly. That's a really good example by the way. Even though I never played Metroid before, it does seem like an interesting series, and I would gladly buy one for the Wii U. Unfortunately for us who would rather see a deserving DKC game to top off Retro's trilogy, I don't see it happening in a long time. I think that snotty Metroid fans have already raged and pressured Retro ever since revealing Tropical Freeze at E3.

JaxonH

#27

JaxonH said:

@Funny_Moblin

Don't get me wrong. Metroid IS amazing. In all honesty, it's every bit as good as my beloved DKC. But, in all fairness one should not complain about DKC releasing over Metroid when we already got a triple dose of Metroid from Retro, and another triple dose in Prime Hunters, Prime Trilogy and Other M. Not to mention multiple VC titles- Metroid, Metroid 2, Super Metroid, Metroid Fusion... Yet for DKC we got ONE sequel and still can't buy the SNES games on VC, whether it be on Wii, 3DS or Wii U.

The truth is, I'm almost 99% sure Retro is developing a Metroid for Wii U. They said they chose DKC over Metroid, which implies that would be next on their list. It was just a matter of which one comes first. And I'm stoked about that! But IF by chance the game happens to be DKC 3, or any other franchise besides Metroid, that's cool too. It's not like we won't get a Metroid one way or the other, and it's not like DKC isn't every bit as good anyways...

EDIT: But yeah, you should really play the Prime trilogy. Metroid fans are fiercely loyal for a reason- the games ARE utterly fantastic. I just hate it when people dog one over the other, when the one has already seen so much more attention and so many more releases, and yet sells so much worse. But Metroid IS fantastic. Try Super Metroid or Metroid Fusion on Wii U and test it out (if you dig retro releases). I'd say Fusion simply for the GBA features like screen smoothing and real time manual access. Or, jump right into the Prime games on the Cube, or better yet snatch up that Trilogy on Wii, which is currently at Gamestop for $49.99 (10% off at PUR member)

Funny_Moblin

#28

Funny_Moblin said:

@JaxonH Yeah, I don't really have a problem with them developing Metroid now, but it's just some of the fans that anger me. Honestly, I'd like another DKC just a tiny bit more since I've played it before, but I'm good with another Metroid too, to see how I like it. I really like your point about having many more Metroid games released aside from Retro's trilogy. I myself didn't have a chance to get the DKC SNES games, and I'm kinda bummed about that.

Also, the thing is that Metroid fans begged for Metroid so hard, acting as if it wouldn't come to the Wii U. With all the Metroid games having released in the recent past, they knew perfectly that a Metroid game would be made for the Wii U, and don't forget the Metroid attraction on Nintendo Land. They knew it was coming, but decided to screw over Donkey Kong just so that they could get it earlier.

C-Olimar

#31

C-Olimar said:

@JaxonH Thanks for not bringing sales into the argument. Yes Donkey Kong sells more, but the last thing we need is gamers determining a game's worth by sales.

The sole reason I wanted Metroid above Donkey Kong was because of the potential a Wii U Metroid has. It is immense - Metroid can take advantage of so many Wii U features. As we saw with Tropical Freeze, Retro didn't really have anything to do to move Donkey Kong forward on this console.

I haven't played either the modern DKC games nor the Prime games, so I can't comment on general quality. I prefer FPS games to platformers though, so I would have been more likely to give a new Prime a go.

Admittedly, Donkey Kong made more sense at the time. Metroid would undoubtedly cost a fortune to develop on an HD console and Donkey Kong is arguably more likely to sell systems.
I have to say though, I honestly thought Retro were doing something better than Donkey Kong or Metroid. I thought a new Star Fox, Zelda or even a new IP was in the works. Even if Retro had chosen Metroid, I would have been disappointed. At the moment, they are almost definitely working on Metroid, but if anyone can give Nintendo their next killer IP, it's Retro.

C-Olimar

#32

C-Olimar said:

Wow, I didn't realsie how long that was!

tl;dr Donkey Kong was the better release for the Wii U's situation, but Metroid had more potential. Above all, however, something new was preferred.

JaxonH

#33

JaxonH said:

@C-Olimar

The only reason I mentioned sales, is that is the best determining factor for demand. More sales mean more demand. And I couldn't see the logic in equating 'releasing a game of higher demand' with 'more financial trouble'.

In the end, everyone has their own preferences- some want DKC most, some want Metroid most, some want something new most... and that's fine. It's when people start dogging anything that isn't on their WANT list, that bothers me. Not saying you personally, I just see a lot of people do exactly that.

unrandomsam

#34

unrandomsam said:

Maybe if they better Super Metroid (Same style) They did I think with Donkey Kong Country Returns.

Otherwise they should do something else. (Maybe finish the games that got put on the backburner if they don't have any more ideas.)

Car Combat / Thunder Rally
or
Raven Blade

Sounded much more interesting. (Or they could do a sports game - They had an NFL one that was axed).

C-Olimar

#35

C-Olimar said:

@JaxonH I didn't realise you mentioned sales; I was being genuine. Now it seems like I was just being sarcastic :o

Anyway, I don't mind the fact that Donkey Kong was released. It has more universal appeal than Metroid. We'll get a Metroid eventually, so everyone will be happy in the end!

Well, except for those that wanted a new IP. Maybe one day...

Funny_Moblin

#36

Funny_Moblin said:

@JaxonH Thanks so much for your recommendation. I completely forgot that I have Metroid for the GBA free from the Ambassador program. It was pretty fun, but I didn't dif it that much. I'm sure the 3D Metroids are really something else though.

JaxonH

#37

JaxonH said:

@C-Olimar

Yeah, but people should keep in mind we JUST GOT a new IP with Wonderful 101. And it was utterly fantastic. Not from Retro, granted, but it was still great, and people still didn't buy it (shame on them!) Even so, we have Monolith Soft's X on the way too, which is another new IP (albeit in the same vein as Xenoblade), as well as 2 collaborations which have never been done before- Hyrule Warriors and Shin Megami Tensei x Fire Emblem. As well as Bayonetta 2- which isn't new but might as well be; it's only had one prior entry and most Nintendo fans haven't played it. Even still, there's S.T.E.A.M on the way (possibly Miamoto's new IP, possibly a different game altogether).

Idk how I feel about the "new IP" arguments. People are always perpetually asking for something new, then when something new comes, they say "No, that's not what I wanted, now give me something new".

unrandomsam

#38

unrandomsam said:

@JaxonH Yeah one. X might as well not be.

Most games should be new IP's or at least a decent amount like we had in the 8bit/16bit era's.

Especially if they don't live up to the heights set by the last entry.

JaxonH

#39

JaxonH said:

@unrandomsam

That would be a bad move all around. New IPs don't sell that well.

In the 8-bit and 16-bit era, Nintendo was still establishing it's library. They were still CREATING the brand. Which explains why there were so many new entries. Cause they didn't have a full well of IPs to draw from. Now they do.

You have to ask yourself, what is the point of a new IP? Really? What is the true, actual purpose of it? The answer to that, is diversity and avoiding franchise fatigue. Which makes sense when you're releasing annual sports games, Assassin's Creeds and Call of Duty's.

But with Nintendo, even their recurring franchises only get one, MAYBE two releases per platform per generation. Most only get one, and some are bi-generational, only seeing a release every 10 years or so. Some go 15+ years before seeing a new release. Nintendo's catalogue of IPs is diverse and deep enough that they don't HAVE to constantly create a new game in title. Even so, the Wii U was out less than one year and it already got a brand spanking new 1st party game with Wonderful 101. It also got a brand new 3rd party game with ZombiU. One of each. And it got Pikmin 3, a revived franchise after a decade absence and only 2 previous entries. If the point is diversity and avoiding franchise fatigue, Pikmin 3 fits that bill perfectly. So does DKC Tropical Freeze, considering it has only one single predecessor since the SNES. Same for X... And Bayonetta 2. Again, only one previous game that 99% of Nintendo fans haven't played yet. How in any way does Bayonetta 2 not have the same impact as a brand new IP? It's the same thing. Nobody's played it before, and it's different. S.T.E.A.M. is trademarked and coming. I mean, I just don't understand the argument whatsoever.

New IPs always sound great, until you actually get them and realize you don't want them.

Retro_on_theGo

#40

Retro_on_theGo said:

My friend bought stock in them one time and the next day it absolutely plummeted. I don't think he ever bought stock again. It was hilarious.

Zombie_Barioth

#41

Zombie_Barioth said:

@JaxonH
I think people overestimate how much they want new IP, and the other part is the "coffee" effect. People often end up saying what they think they should say rather than what they actually want. In this case new IP is the dark, 'sophisticated' coffee and established "rehashes" IP is the weaker blend most people actually buy. Your 'supposed to' want new IP or your a "filthy casual", a "fanboy", or all thats wrong with the industry.

The price of games doesn't help, since even $40 is a lot to splash on an interesting but unproven idea. We're creatures of habit and like what we like, even when we try something "new" its tied to something we already know like a favorite brand. How many of us pick new games based on the company that made it?

We still need and want new IP, variety is the spice of life after all, but all this hubbub over "rehashes" and "milked" IP is ridiculous. Most "new" ideas aren't really all that new either, at most they're fresh(er) takes on old ideas.

luke88

#42

luke88 said:

@antipop621 Me too, I often think it's strange; I have so little interest in the financial performance of every other multinational out there but I care so much about every small fluctuation of Nintendo's share prices.

luke88

#43

luke88 said:

@JaxonH Don't forget Pullblox/Fallblox and harmoknight, as well as a host of other new IPs made by independent devs, steamworld dig for example. Only new IP the one has seen so far has been Titanfall. It wasn't all that great, in my opinion, yet people seem more vocal when it comes to Nintendo platforms. Maybe I'm wrong; I don't frequent xbox sites, perhaps I just don't see criticism of them.

Dreamz

#44

Dreamz said:

What's this, a positive article about Nintendo? This simply won't do. Quick, we call Gamespot and have them post another doom and gloom article, stat! Before this toot toot gains momentum.

PJR0cks

#45

PJR0cks said:

@Dreamz Actually I think GameSpot is handing the torch to Polygon.
Anyways happy to see the shares going up it definitely has to do with MK8's release and marketing efforts made by Nintendo.

Frapp

#46

Frapp said:

@StarDust4Ever "Forget DKC returns/ tropical freeze. What we need is 3d Donkey Kong Sequel to Rare's awesome DK64, with tons of bananas to collect!!! :)"

Untitled

Grumblevolcano

#47

Grumblevolcano said:

@JaxonH Yeah, the fact that the DKC trilogy was removed from Wii VC at the end of 2012 is a good enough reason for DKCTF to be higher priority than a new Metroid.

smikey

#49

smikey said:

@Retro_on_theGo
If you're friend had any brains he'd have bought even more stock the next day when they plummeted.
All stocks go up and down with out exception regardless of the company.
he will or would eventually see a profit if that's why he bought them to sell for profit.

I buy shares in Nintendo at least once a year often several times (in small quantities) (& shares in a few other companies too) I have no desire or intention of ever selling a single Nintendo share but when I'm gone if the kids Don't want to own a part of Nintendo I know with out any doubt they can sell the shares for way more than i'll have ever paid.

JaxonH

#50

JaxonH said:

@Grumblevolcano

Well, at the very least it's just one more example how little has been done for the one franchise and how much has been done for the other. Although, it's a pretty big bummer all the same.

It's not even like I don't want to see a Metroid, I'd just prefer my coffee without insulting my tea.

datamonkey

#51

datamonkey said:

"Nintendo's past year has shown that the current numbers reflect a relatively consistent level"

Yes but unfortunately that "consistent level" is at a rock bottom valuation. A 10-year low in fact.

Sceptic

#52

Sceptic said:

It's just a few traders getting ready to dump some cheap shares on the fools that will read about MK8's "amazing" launch success and conclude that buying Nintendo is a sound investment.

IceClimbers

#53

IceClimbers said:

@Dreamz Gamespot gave ALBW a GOTY award over games like The Last of Us, GTA V, Bioshock Infinite, and Beyond Two Souls last year.

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