Miitomo.jpg

The dust is starting to settle from Tatsumi Kimishima's first 'President's Presentation'; there were various interesting details - many of which we've covered elsewhere - yet the overall impact hasn't been entirely positive. As one of two briefings designed to address investors and media - a second closed-doors investor-only briefing had no media present - its target will have been to reassure and build confidence.

Much focus was on the unveiling of Nintendo and DeNA's first smart device app, which emerged as Miitomo, a communication app. Other announcements included Nintendo's new customer loyalty / account system, and while various aspects are of interest for fans investors were undoubtedly primarily focused on Nintendo's move onto iOS and Android.

Overall the reaction among investors has been negative. Nintendo shares closed 9% down on 20,945 Yen, a notable drop. It's the lowest point since 2nd October and has undone steady gains over the last month; you can see the overall trends below.

Nintendo shares - changes over 29th October (Japan time)
Nintendo shares - changes over 29th October (Japan time)
Nintendo shares - changes over one month
Nintendo shares - changes over one month
Nintendo shares - changes over one year
Nintendo shares - changes over one year

As quoted by Bloomberg Tomoaki Kawasaki, an analyst at Iwai Cosmo Securities Co, shared disappointment at the choice of branding and the delay to release next March.

Nintendo's world-famous contents are Mario and Zelda -- instead we saw Miitomo. The expectations were for a game release this year, so it's a clear negative that the earnings recovery will now come later.

Nintendo's line is that the delay is strategic, particularly to tie Miimoto and the Nintendo Account system - our logins will be called My Nintendo - together. Kimishima-san reportedly stated the app is largely ready to go, but the festive season will focus on the core Holiday shopping season.

The app itself is already functional. December is the biggest selling season in our traditional business, and we want to do right by our lineup of software and hardware. We thought it best the smartphone application would follow after that.

In any case Nintendo's announcements haven't sat well - initially - with the investment community. It's a long game though, and as we've seen before shares can increase just as rapidly as they drop.

[via bloomberg.com]