While the reveal of the Nintendo Switch was an exciting moment for plenty of fans, causing plenty of buzz online, one group of people was evidently unimpressed - investors. Nintendo's share value plunged 6.5% after the reveal, wiping out gains from earlier in the week and more besides.
With a fresh week underway the poor momentum has continued, with Nintendo's shares falling to 23,970 Yen, down another 4.82% from the start of the day. That's the lowest value in over a month.
The issue this time seems to primarily revolve around Nintendo's upcoming Q2 financial reports, due to be announced on 26th October. A key factor is a report by Nikkei stating that it believes Nintendo will report a 5 billion Yen (approximately $48 million) operating loss for the first six months of this financial year; analysts have previously been estimating a 3 billion Yen profit.
All will become clear later this week when Nintendo shares its financial reports on 26th October.
maybe they should start releasing games
You need to sell stuff to make profit. Even though I like a lot of the games released in the last few months they haven't been exactly lighting up the world with sales. Just look at Paper Mario sales in their homeland.
It's only because they really have nothing for the holiday season, besides just a few games for 3DS. If they had some big game to come out for the holiday, or even if they released the Switch early or even Zelda early, their investment would go up, but with nothing...equals nothing. They won't really see a large spike until March.
@Galenmereth interesting, where though?
@JLPick You can bet they're banking on moving millions of nes mini's but even then that's just pretty much the price of a game.
Well duh. Other than Pokémon (which is more Pokémon Company than Nintendo) they have NOTHING for the rest of the year.
Well duh. What have they released to make a profit?
They're doing it to themselves.
Nintendo can still turn things around and get us loving the NX, but it's going to need good games.
@whodatninja Sadly it's true. 2016 has been a barren wasteland for Nintendo fans. At least 2017 is looking bright.
Wii U continues to hurt, unfortunately. 3DS can't cut it much longer with that screen and performance.
You know what might help? Combine those two platforms to focus most of the company's core game talent and energy on just one dedicated gaming device and combat the tide of smartphones for casual gaming by collaborating for presence there as well.
One problem: not going to get there until about March 2017. So, though expected, it's going to hurt.
Fortunately Nintendo has cash and a good plan, in my opinion.
It's worth noting that ostensibly all this drought is from key teams working on new Nintendo Switch games. And people who are hesitant on NS can still have what looks to be an amazing new game as a capstone to their Wii U library.
Too me, this is very, very promising. Imagine if Nintendo was focused on adding more games or deepening current games in the Wii U library right now. Some of us would be happy, but the NS would launch with very little to play on it. That would be so much worse than one wretched quarter.
Well it's a good thing Nintendo got like 661 million from selling the mariners.
Welp, the Wii U's at death's door and the 3DS is in its final years (Not to say the 3DS games will cease once the Switch arrives, but it'll certainly slow down after), of course the focus would be mainly on Switch development and ensuring a strong launch.
Anyone else have backlogs though? So much fun with old games. My son is rediscovering Pikmin 3 now that he's a little older and he's reeling me back in for the challenges (which are the best part of the game, in my opinion). I mean, if you have a regular working or school life going on, and you are responsible. There's plenty to play.
Doesn't help Nintendo directly, though.
Buy low sell high amirite?
Now is a great time to buy, sell it back to these suckers the moment the switch is successful.
Ah......stock roller coaster, welcome back!
Investors are idiots. They don't really play games. They're at the top of the chain, so they're not the common customer and thus do not behave like they say the common customer does.
I know there's cause for caution regarding the Switch but it would be horrible if they just complied to their demands and released a regular box that plays games. There's no place for Nintendo in that regard.
@aaronsullivan I have so much backlog of WiiU games like Xenoblade X, TMS, Pokken Fighters, ZTP, Paper Mario and lots of indies, but my WiiU external Hard drive seemed to stop working on me basically turning my WiiU into nothing but a SNES machine cause I don't feel like starting over in most of my games.
Nintendo had a decision to make. I think they chose the correct decision to phase out the Wii U and focus on having a good launch line up. This would mean a barren patch for most of 2016. Some of this is also selling the news and investors locking in profit from before.
Translation: There's not a lot going on in Nintendo's world currently that's generating massive revenue for them since they are in a transition state currently until a new system, with new software (and buzz and excitement), can generate revenue anew (read: Launch of the Switch). But the funniest takeaway is, Nintendo's hardly broke, so this news is neither here nor there, really.
@Angelic_Lapras_King Meh, once the switch hits the 3DS is stone dead, supporting an old console when the new one is out is just so 1990s!
@Spoony_Tech "moving millions of nes mini's "
Assuming they make more than 50,000.
OK, joking aside, do you think they'll make enough to meet demand? I think 2 million sales would be an easy number to reach, but I could see them making only 1 million. How many Wii Fit Trainer amiibo did they make?
My wife and I have discussed this - she's in production and has merchandise made and shipped from China - and decided it's hard to know how many they'll make as we don't know if this is a 1 shot deal b/c NS got delayed for the holidays, or will this be a 1 year long deal until SNES Mini releases next holiday, or are they planning on still selling it 3 or 4 years out? The question becomes - what kind of manufacturing contract did they sign, a 1 time quick batch or a year or mutliple year deal? These things don't make themselves, and I doubt Ninteod is manufacturing it themselves.
And yes, I know it's a weird thing to be discussing w/ my wife, but it was a nice change from endless NX discussions at the time.
@MysticX Pokemon B2W2 launched several months after the 3DS and given a new Pokemon generation is launching on 3DS, I would bet we'd see another set of games after Sun/Moon in the same vain as B2W2 as a stopgag while Game Freak develo the 8th gen games for Switch. Also one year the UK's best selling game on a Nintendo system was Frozen on DS. XD
Oddly enough to make a profit, Nintendo needs to release games, I know, shocking right?!? There has been a couple great games released for 3DS (SMT Apocalypse, and Dragon Quest VII) but from Nintendo, all we got to look forward to is Pokemon (which will do well, of course) Mario Party (who cares...), and a crappy port of Super Mario Maker. On the Wii U, we got Paper Mario, which is a great game, but won't get a lot of ppl cause of them making ppl mad that they got rid of a lot of RPG elements.
Nintendo honestly needs to work on having more releases spanning the whole year, and games to play on the former console before the next console comes out. Seriously, the Wii was like this too, they only had Skyward Sword to look forward too at the end, just like on the Wii U we only got Breath of the Wild, which a lot of ppl will probably get on the Switch instead.
So is this about the April - Sept 1/2 of the year, their financial 1st half? Yeah, that's dead.
Big question for their holidays to be saved is Super Mario Run. There's a difference between releasing it December 1 and December 31. I think if they release it earlier enough in December and Apple promotes it, which they will, Nintneod could sell a lot of hardware this Christmas. The hardware will be the $199 6th gen iPod Touch as kids Christmas gifts, but hey, it's something.
And we know SMR wont be free, but we don't know how much it will be. Only a few years ago it seemed like every game on mobile was 99 cents, but who knows what Nintnedo will charge for Mario? I'd say charge low, $4.99, make money on a billion sales, would be a better strategy than $29.99 trying to make a profit per sale, but who knows, it's Ninteod.
But between NES Mini - if they make enough - SMR, Pokemon and Animal Crossing: New Leaf: Welcome amiibo I think their holiday won't could be ok. Who knows, maybe any minute now they'll drop Wii U to $199 and clear out those and a bunch of Nintendo Selects games as well. Wii U might be a loss per unit but it's still income. Surely they've written off any remaining WiiU stock by now.
Of course this is going to happen. Their last Wii U game effectively was 2 weeks ago. And their releases have been as sporadic as Homer Simpson's hair. And even when there is a game, they haven't put full effort in. Thank God Zelda: BOTW has Switch or they might have stitched it up.
And this is that shocking how?
Somewhere from Minor profit to moderate losses was pretty obvious given the barren(except to a small subsection of 3DS owners) release list for the covered period.
They are still expecting a profit for the year as a whole and with the holiday period, Mario Run, Pokemon Sun/Moon, Mario Maker 3D, Switch launch, New Amiibo, and NES mini it's pretty easy to see them hitting their target.
@aaronsullivan "It's worth noting that ostensibly all this drought is from key teams working on new Nintendo Switch games."
Same thing was said the last 2 years of Wii's life as well. Problem was, Wii U finally arrived and Nintendo actually didn't have games ready for release.
Nintendo's FY2017 Q2 results should be a huge improvement over FY2017 Q1 and FY2016 Q2 (the same quarter last year) thanks to royalties from the phenomenal success of Pokémon Go and the subsequent increase 3DS hardware and software sales. What will be interesting to see is if the FY2017 Q2 profits are able to overcome the FY2017 Q1 losses. Obviously, these analysts don't believe that will happen.
Hardly surprising, this and next quarter were/ are not destined for greatness. A year from now, this will obviously be a different story though ... we shall see.
I think the numbers will come a little better than expected. They say they built Pokémon GO in, but no one expected that revenue for that game would be at $600 million. Niantic was only expecting about 20 percent of what it has done.
The GO Plus is selling out. The Classic isn't going to have an impact until next quarter.
Time to buy!
@crimsontadpoles On that note, I find it smarter to have a strong launch for the Switch and potentially gain more profit next year than try to salvage this year. Releasing some "big" title on the Wii U before the switch comes out would just be stupid in the long run.
Oh, they're doomed again.
How anyone (let alone analysts, whose job it is to research and know these thing) could be expecting profits after Nintendo's basically nonexistent output of new games and terrible hardware sales, coupled with the fact they're preparing to launch a major brand-new system and all the R&D that comes with it, is beyond me.
@CB85 At least Nintendo usually puts quality of software over deadlines and profits. ...usually
Well yeah, the first half of their financial year wasn't great - their biggest release on dedicated hardware was Kirby Planet Robobot. The sale of the Mariners and Pokemon Go will basically make the first half of the financial year.
This holiday will ride on Pokemon Sun/Moon, NES Classic Edition, and Super Mario Run. Not a lot, but Pokemon alone will make it a better holiday for them than last year lol.
Don't worry; shares will be up with Super Mario Run.
I bet they didn't make enough NES Classic Systems to meet demand either. Are amiibos still selling at least? I never bought one, lol.
Because analyst usually see the markets from a business perspective and have no idea how the public perception for these stuff. Just look at Patcher....
Buy the rumour, sell the news.
@gatorboi352 Everyone seems to forget this little fact.
@TheLZdragon Definitely. That's why I love them!
Lol at everyone telling them it's their own fault. Yes, it is their own fault, only because they're working hard on the switch console and games for it (which turns out, is all internal time). So quit your complaining about no software. The same people who complain about them not making Wii U games for this year will be the same ones complaining there aren't enough launch titles for the switch.
They're just doing minimally what they can to just float on through till the Switch is released.
@MrGuinea That is, of course, if you believe what they're saying is true. We found out with the Wii U that they weren't working on anything.
No games, no gains! If you only have like 5 big first party releases in the entire year then what do you expect?
@Nintendo_Ninja well this is why people say Nintendo fans don't buy third part games.
@Clownshoes I promise you they have made more than 500,000. These things release in November and they will need some on the shelf for Christmas.
@Equinox r & d on the switch and their deal with tegra are probably quit costly
@aaronsullivan I have quite a backlog built up I'm only now getting around to some of the wii games that I bought back in the day and there's still a few virtual console games that need to be finished.
@Captain_Gonru the launch of the next system is way to important
I'll tell you what: a lot of folks (and certainly investors) see Nintendo's reversion back to single screen gaming, and a further commitment to low-end processing, as a sign that Nintendo has exited the console market. Nintendo has withdrawn from the race.
look, just because my camera can play videos through the tv does not mean it's an entertainment system.
and so: THIS IS NOT A CONSOLE in it's current form. it's not even a hybrid. it's a handheld that connects to the tv. that's all.
Keep going down so I can consider buying some stocks. I'm sure it will go up again.
It was all hands on deck at Nintendo for several years to prep Nintendo Land and New Super Mario Bros Wii-U for launch day!
@day lol whatever
Perfect time to buy.
Edit: Actually wait until they reveal the losses and they drop some more.
I've already started to sell my Wii u and 3ds stuff ready for switch!
You can believe that all you want, and even put it in capitals but it doesn't matter to a lot of people and to those who do care....
@aaronsullivan: Excellent point. I can't even pull the trigger on a used $20 Lego City because I have Pikmin 3, Zombie U and a few other Wii U games that have not even gotten a first run. Darn you FAST Racing NEO DLC!
No kidding. Let me see......
1. No major game title until March 2017, except New Pokemon for 3DS in November.
2. Major cost Write off for Development and manufacturing of the New Switch console, that isn't going to make any Money until sales begin March 2017.
So... no kidding they going to report operating loss.
Can I become a Professional analist now?
Isn't this expected to happen during the current console wind down before a new console becomes available for pre-order? The revenue steam for the current console dries up while consumers wait for the latest and greatest to come available...
@bluedogrulez By gosh, I keep forgetting that came out! I'll have to snatch it tonight and surprise the gf. She loves FAST Neo.
This always happens after the reveal of new hardware. Even the PS4 caused Sony this kind of damage after reveal.
Considering they've released next to nothing, and have the Switch production/R&D costs to deal with, it's not surprising. Nintendo is just gonna have to eat this up and wait until March.
Now that the dust has settled, I've gone from excited to concerned with the switch. I'm seriously hoping that the dock will add more power to the console, enabling it to be on ps4 xbox levels. Otherwise, i don't think the switch would be able to feature games like red dead redemption 2.
"That's the lowest value in over a month"
Honestly I couldn't care less. I don't follow stocks, I don't care about stocks and the lowest value in over a month means absolutely nothing to me. Unless you're invested and you're actually watching the value rides and drop every single day and every single week then who cares...
And that goes for whether their stocks are doing good too.
Unless it's like the lowest or highest in a decade or something, this just means nothing to me. I want to talk about games not Nintendo stock value over the last month
"THIS IS NOT A CONSOLE in it's current form"
Yeah like the guy above said, those capital letters aren't convincing anyone but yourself.
If it hooks up to the TV out of the box, plays console games and has a separate controller then... that's a console. Yes it functions as a handheld also, absolutely 100% true, but that doesn't negate it being a console.
If they were pulling out of the console market, then you never would've seen this reveal. You would've seen a 3DS successor with dual screens and handheld games and no TV play and no separate controller and a $200-250 launch price point, as well as the discontinuation of 3DS support as they move on to support their new "handheld".
There is a difference between modifying your strategy and giving up.
@aaronsullivan I have a big backlog in the form of games I haven't been able to buy, if that counts. When I get money, I will game.
Yes, of course. I still have a lot of older Nintendo games (NDS, Wii and Gamecube) that I haven't get yet. While waiting for Switch, I still have enough time to get my dreamy collections.
It's no secret Nintendo was going to be hurting until the NS gains traction next summer, there just wasnt enough released and they have to eat the costs of hardware production.
Hopefully news on the 26th isnt too dour, but I expect out-of-touch investors (read: most of them) will be selling shares on and off until the NS proves itself.
Pikimin 3 is an old game? Now I'm feeling REALLY old. 😳
I heard the Super Mario 3D World sales did alot better when it became a Select Classic back a month or so ago.
I think they should release another set of Selects in November like have Mario Kart 8, Super Smash Bros, Baynatta and Hyrule Warriors .
Console or portable, who cares ?
As long there are some interesting titles for me , I will play them. Btw, I have BOTH consoles and portable (NDS, 3DS, Wii and Wii U).
@Captain_Gonru I've already said enough about Zelda today, post #22.
The fact that they are even promoting NS with Skyrim is so Teen Titans surreal (bordering on TTGo) nobody even sees it. Why should Switch need Skyrim if it has open world Zelda? Show Destiny or Titan fall 2 or RDR2. Skyrim is redundant and silly. Skyrim selling NS is the spam skit.
After it flat lines it'll be time to buy because in March it should spike shouldn't it ?
@Spoony_Tech Millions? What are you smoking? Lmao
It rises again big time when Mario Run is released!!
Update: Oh, I forgot it isn't free to play (only free to start). That may be a issue. How much are people willing to pay for it? If it was free to play (with microtransactions) it would go through the roof. Sad but true!
They probably release snes mini in january-february to have something until Nx shows up.
It's a massive company with an incredible amount of cash reserves. even if they mess up the Switch and have poor sales they'll be ok because at the moment they can afford it. Investors are fickle creatures so I wouldn't pay much attention to this, however Nintendo haven't helped themselves by going cold turkey on the Wii U and particularly the VC.
I don't understand why they don't realease Zelda in WiiU for Xmas (it seems ready IMO) so that it sells to all existing WiiU owners...
I'm pretty confident that existing WiiU owners are mostly Nintendo fans (who would buy a WiiU except a Nintendo fan?) that will buy the Switch and would re-buy Zelda for switch with no hesitation in March...
But who am I to have this kind of ideas lol ?
I'm actually kind of glad there aren't any more awesome Wii U or 3DS games coming out this year (Except Pokémon of course) because I'm currently unemployed and this gives me a chance to save up the money to buy Nintendo Switch and maybe a game or two when it releases (providing it is in fact affordable of course).
It could be to do with the losses expected at the beginning of a products lifespan. Either way investors are a shower.
2 of their biggest space franchise flopped recently: Starfox on Wii U and Metroid on 3DS. Is this the end of Nintendo?
Sometimes I wondered if they are purposing sobotaging themselves? They will make something wonderful but at the same time put in something repugnant with it. Mario Maker 3DS for example, it's great they are coming to 3DS but they will not allow online sharing. Nintendo always do things like that.
@Captain_Gonru My Cialis commercial parody post? I think I wrote that one later in the day, but it does get to the point about over-hype.
In the defense of devs, I think these games cost so much to make they have to over-hype them in an effort to make their money back. And they have to delay them to make them right, those Assassins Creed games were a broken mess. (side note - during a live on stage demo of Horizon Zero Dawn the vice president of Sony so-and-so had his character fall thru the floor into a big white void. My reaction comment to the random guy next to me - "Well that game just got delayed another month.")
But I'm still hyped about HZD. I think 1 year to 18 months of hype is probably all I can stand, 3 years is just way too long. 3 years of not seeing anything in Zelda to be hyped about, I'm sorry but wall climbing was a big deal in Uncharted 1 as a PS3 launch title in 2007, 10 years before Zelda releases.
Uncharted 1 trailer in 2006. Zelda looks better, but HD > SD
I thought I saw it reported that the share price went up following the reveal? No idea why investors have reacted negatively to this announcement. The response from the public has been largely positive. Far more positive than initial reactions to the Wii and Wii U.
@onex: Hope you enjoy it! Same quality as the other circuits, though the first one seems to demand an agile vehicle...the second one seems to be built for Fulcon Capital (yes!!!)
Nintendo did mess up the Wii U launch, but I don't remember 2 years of drought I remember one year of drought. For instance Skyward Sword launched almost a year to the day before Wii U.
Also, as much as Nintendo Land was a big mistake in terms of presentation and communication. I play that game about once a week again lately because my family can't seem to get enough. Solid gaming, horrible miscalculation how it was presented with that weird, weird aesthetic that made little to no sense and the feeling that everything was a mini-game, the bane of Wii. Much better than it looks and feels at first, in my opinion. But, anyway.
There's no denying the launch lineup was poor overall and the launch window was mismanaged even worse. Blame it on whatever, transition to HD, unexpected drop off a cliff of Wii sales, it was bad.
Point is, it's not quite the comparison you want it to be, but does highlight how important it is that Zelda land on the new launching console this time.
It looks as if we'll get major Zelda and Mario games in the launch window this time or at least in the first year. That would be something.
The other important huge and deliberate change here is that the launch will be targeting one platform while two stop receiving new games. If Wii U had Luigi's Mansion 2 and Kid Icarus, and the other 3DS early games in the launch window, what a different story it could have been.
@aaronsullivan " but I don't remember 2 years of drought I remember one year of drought. For instance Skyward Sword launched almost a year to the day before Wii U."
One game a drought does not make up. Literally it was essentially Skyward Sword and nothing else that last year, so yeah I still stand by my 2 year drought statement despite SS existing.
I do agree that Switch launch should be way better than Wii U launch though.
I'm actually worried about the NS launch and potential drought right after. Mario and Zelda are a great start but will largely pander to Nintendo fans. When will Skyrim be available and where are the other third parties? Seems like we've had the reveal so third parties shoukd be able to announce games in development right?
@Spoony_Tech I know...that's things been sold out before it even came close to coming out! I wanted to get one, just to keep a hold of (since I've already bought on the games on the original NES), just to see what it would be worth in the future!
@cleveland124 Usually, when the nintendo consoles launch, it is about a month or two later until we see more games come out for it. If it's nintendo, it will be close to the end of August, before another one of their games come out, but let's not forget that Pikmin arrived on the Gamecube after a few months of it's launch. Hopefully we don't have to wait almost a year for the great ones to come out (like 3DS). Wii was pretty good with getting Super Paper Mario out at a decent time...it just depends on how far along the titles are, and with the fact that the Wii U didn't really get much this past year (big budget titles, just mostly rushed titles), we could see big items coming. The Animal Crossing team hasn't been too busy, so maybe a new Animal crossing title is right around the corner...Amiibo Festival and Happy Home Designer seemed like rush titles to bank in on the name, so maybe something big has been being worked on. With the fact that they announced this over a year or so ago, they may have had people working on games since then...which means they had plenty of time to get the games polished and delivered.
More info on the console is needed and then what games are coming. The thing I'm worried about (as what I stated in my post above) was the 3rd party games coming out to it (skyrim and Just dance)...they'll be 5 months old on the PS4 and XBONE, which means the price on those two consoles will drop, and they'll probably be full price on Switch, which could disrupt the 3rd party support again. I thought 3rd parties would learn from the Wii U (Mass Effect 3, Darksiders 2, NFS Most Wanted and a few others) that consumers aren't going to pay $60 for a game on another console, when they could get the same game for $20 on another. Maybe this one will be different since you can play them on the 'go' though! I'd buy a second copy of a game I own on PS4 to play it on the go!!!!
@gatorboi352 I started to see a pattern to nintendo's drought. The year before they release a new console, the console that is out right now gets a drought for it's final year (Wii, Wii U, Gameboy Advance, Gamecube, N64 and even Super NES). If they don't have any more DS-type-handhelds, then we wouldn't see a big drought on the SWITCH until it's final year. If the handheld comes back into play, then just like the past many years, and let's compare it to this generation...If the 3DS gets a lot of games coming out one year, that same year the console barely gets any. If the console gets a lot of games one year, the handheld barely gets any. I think that's why people wanted them to make a hybrid so badly, to ease the droughts and have the companies work on just 'one' system instead of two. This will be the system to wait and see on! Other than that, every new console that comes out, has a small drought from launch for at least a month or two, before more games start pouring out, but if nintendo loses it's 3rd party support again, we could definitely be seeing more droughts. The only reason 3DS and Wii U has been getting droughts, is due to it just being nintendo making the games for it (except for one or two by Ubisoft and Sega).
@ElGrego I've wondered this too. It also seems that they have the Switch fully ready, so I don't even get why they just don't release it for the holidays. The Wii U version is ready, and since we've been awaiting it since the Wii U's launch date, I don't get why they are doing that to the fans of the system too. Release it, throw in an Amiibo with it, release the Switch version with it's launch...throw in a differently new Amiibo with it then, make more money. They already stated before that they're not making as many copies of the game for Wii U, so why not just release it already!
@cleveland124 these are all great points, and valid concerns.
Tap here to load 97 comments
Leave A Comment
Hold on there, you need to login to post a comment...