
Just over a week ago Nintendo unveiled its annual financial reports, with the most notable announcement out of those days being the New Nintendo 2DS XL. Beyond that we saw that the Switch easily beat its launch sales projections - shifting 2.74 million units in March - and got a sense of Nintendo's plans for the year ahead. In summary the company was promoting cautious optimism for Switch while keeping the 3DS very much alive; its projections for net sales would also make it the company's best year in that area since the Wii was in stores.
In any case, sometimes there's the valid criticism that mentioning share value right after the financial results doesn't paint a reliable picture, as markets tend to sway like a tottering drunk in response to projections. So, a full week on, how has the Tokyo market been reacting to Nintendo's current direction as a business?
Pretty well, actually, with the share price at the end of this week - 28,355 Yen - being the highest Nintendo's stock has seen in 2017 to date, with that figure last topped in mid-December 2016. It's been a month of steady gains, and at the very least Nintendo's published results last week had a solid impact, not prompting any notable loss of confidence.


In general there seems to be optimism that Nintendo will beat its projections - for example the company is estimating an attach rate of just under 4 for Switch software in this financial year, but some think it'll comfortably top that. Kazunori Ito, an analyst at Morningstar Investment Services in Tokyo, said the following to Bloomberg last week.
Typically, you’ll see about 5 to 6 software titles for each hardware unit in the second year of a console. So they’re really lowballing it. As long as the big titles come out on time, we should see more software sales and that will pull up profits.
It'll be interesting to see which way things go in the coming year. We'd agree that Nintendo's Switch projections, in particular, are playing it on the safe side, but considering the challenges the company's faced in the last 4-5 years we'd suggest that's a fair approach.
If Nintendo does exceed its initial projections, as some think it will, then we could certainly be looking at a truly successful year for the company.
[source bloomberg.com]
Comments 29
That picture of Kimishima smiling makes me happy.
He may not be president for long but I think he'll be remembered for the successful turn-around of the company.
I dare say Nintendo is coming back.
I hope the strike a balance between good guy nintendo and relentless business persuit because sticking to either end will cause the scales to tip in no ones favour.
I still believe that having to dance to the tunes of shareholders is bitter melody to adhere to, I'd much prefer that the voice of customers could be a lot stronger and more influential outside of forum outrage and buying/not buying products.
That peak in July last year must be when Pokemon GO launched.
@SLIGEACH_EIRE exactly, and then the sharp fall when shareholders realized that Nintendo wasn't making that much profit from it.
since then tho its been slowly creeping, which is good news, that's confidence building. Frankly I really do care for stocks/shareholders and market value, I just want good games that make me happy.
Hopefully Mario Odessy comes out on time and if Xenoblade does actually come out for us this year 🤞 that would be awesome!
While most of us probably cringe when investors are made happy because it tends to mean we're getting fleeced and the interests of the core audience are being ignored in pursuit of that broader "other" audience, such as the wii era, the good take-away is continued disgruntlement among investors would have meant demands and pressure to change fundamental aspects of the company. So long as they're kept fat and happy at the trough, they will let Nintendo keep being Nintendo, which is ultimately a good thing for us.
Can we get a Switch prints money gif? We need a new one!
It's Golden Holiday Week in Japan so the Tokyo stock exchange isn't open... As a result the New York stock is not so active.
TYO7974 us the Japanese code for Nintendo stock and NTDOY for New York.
We are expecting Nintendo stock to hit $40 per share and ¥40,000 yen in Japan this year. This may happen soccer than you think as Nintendo will have surprises planned....
@BinaryFragger Wii U may have been disastrous for Nintendo's bottom line, but it was awesome for me! I have so many fond memories of playing Wii U alone, with my wife, and with my kids. There are some AMAZING games on Wii U!
Keep going, Mr. Tatsumi Kimishima !
Please release some color variation Switch bundles to color up our gaming time.
I'm thinking about dumping my shares just before E3, it's just hard for Nintendo to stand out in a way that pleases investors and I'm guessing a PS4 price cut is coming and Scorpio info is looking positive. Thoughts?
I got in last week at $30 per share on the US listed shares (NTDOY), the day right before the new 2DS was announced. The day the 2DS was announced, shares popped by 6% and have risen slightly since. Its at $32.02 as of this writing.
Morgan Stanley predicted 40% upside based on their current low PE ratio, which trails the historic average quite a bit. 33 vs 54.
The Switch has superb momentum, great word of mouth and a true sense of excitement that had consumers buzzing. And clearly, there is an.abundance of pent up demand for a great Nintendo console. Nintendo should easily meet its long term forecast.
DOOMED!
@RandomNerds
What price are you in at? I think the forward momentum should keep the shares rising at least through Christmas. I plan on keeping through 1/1/18 and re-evaluating then.
The risks are a terrible E3, no third parties materialize, the online sucks and the VC is underwhelming. There's also that whole N Korea bit which could affect every single Asian market if things go south.
@cfgk24
I like the optimism! But I certainly hope for more than $40.
I like how you found a picture of Kimishima attempting to smile for this.
@mjharper Thank you lol! I don't know how to do those things.
@mjharper @Spoony_Tech
Need one with Kimishima, Miamoto and Iwata with a halo holding a Switch money printer
Nice to see the company going strong! Let's just hope they dial back the DLC practices a bit, even though those do make investors happy...
A crucial point for investors will be this year's E3. A strong showing with a good reception from the public will keep optimism and results up - they can't afford to screw it up. Although, considering how the have been handling this, it seems they have it well at hand.
Nintendo's Switch software sales forecasts for this fiscal year (35 million units) feel too low IMO. Nintendo shipped 36 million units of 3DS software during the equivalent time frame, and I think the Switch has a much better first year software lineup than the 3DS.
@westman98 Because the 3DS still have more games than Switch, so is easy to reach this software sales.
Anyway, this are only prevision, not the real numbers that Switch can reaches.
@Agent721 I'm up about 14% so far. Buy some crypto currency, it'll jump when the bombs start dropping.
@Equinox I like him so far. It's probably worth adding that Switch was formed under Iwata's guidance, but no doubt Kimishima is bringing it.
@Untempered-Link Especially odd because of the fact that Switch wasn't only Iwata's baby, but it was coming off of the heels of the worst home console in company history, sales wise.
@aaronsullivan i fail to see what he's "bringing" exactly. is he keeping the ship afloat? yeah sure. but by god I hope he would be, or else why would he have been appointed?
let's see if he turns Nintendo around into the next playstation first (words i thought i'd never type) before we go giving praise.
@gatorboi352
Worst home console what ?!
Can you see if Switch is on the TOP now ??
@Anti-Matter He's referring to the WiiU which from a sales perspective was a disaster.
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