Nintendo's share price hit an all-time high of 9,578 JPY before closing the day at 9,490 JPY on 17th December 2024 amid increasing anticipation for the company's upcoming new hardware.
The increase, however, is reportedly two-fold. The first and perhaps most obvious reason is that consumers are desperate for information on the 'Switch 2', and Nintendo has previously stated that it will be officially announced before the end of March 2025. That means that once the New Year has come and gone, we can restart the hype machine with extra gusto.
The other reason for the increase, as reported by Nikkei Asia, is that anticipated tax changes in Japan may lead to increased spending power amongst younger gamers. The proposed changes involve raising the tax threshold for household dependents aged 19 - 22 with part-time jobs from 1.03 million yen to 1.50 million yen.
The current threshold is reportedly discouraging youngsters from working longer hours, as doing so may lower the overall household income through loss in tax reduction. In short then, more potential working hours equals more spending money, and more spending money means more sales for Nintendo. Ka-ching.
It just goes to show how much folks are looking forward to Nintendo's new hardware. During its most recent earnings release, the company reported lacklustre results and decreased its forecast for Switch hardware sales by 1 million for the financial year.
Good news, huh? What do you make of Nintendo's current status ahead of its upcoming new hardware? Let us know your thoughts with a comment.
[source asia.nikkei.com]
Comments 26
1st all the doubters who said it wouldn't sell lol.
Nintendo's share price hitting an all-time high aside as that's expected from the stock market, I'm happy to hear about those tax changes in Japan if they end up happening!
I'm more concerned about the price of the next Switch instead of any new features. A certain orange hued person in America wants to put tariffs on a lot of things. I wonder if that'll factor into how Nintendo prices the console, at least in America. The most I'm willing to pay is $400
@AllBLK I am also worried about the price after tariffs. Gaming is definitely going to take a hit if he follows through...
Where can I buy stock in Nintendo? I've been trying for a while, but I don't know where it is available for purchase.
@eaglebob345 E*trade look up NTDOY.
@AllBLK Just enjoy yourself a holiday outside the US and plan to buy a Switch there
@AllBLK Americans voted for a man who said he was going to put more tariffs on goods so let them have it.
@Rob3008 I didn't vote for him, and I don't want the tariffs... 😢
Regardless, we will soon be entering the find out portion of the program. Much like our UK brethren with Brexit. 😉
Shouldn't it be the other way around? I remember when everyone was waiting for Wii U, Switch and a few other systems where their share prices were dropping because everyone was getting impatient that Nintendo hadn't made any announcements yet. Like oh no all is lost! Nintendoomed!
All those analysts saying Nintendo was done for if they didn't hurry up and reveal something. Why the excitement this time?
Buy in the dip. Buy in the dip.
Surely there's always a dip after Nintendo announces some brand new hardware that turns out to be using 10 year old tech.
Keep going and going and going! Please and thank you!
Yeah and Nintendo's stock skyrocketed when everyone thought Nintendo made Pokemon Go on their own. Speculators always be speculating.
@Truegamer79 The excitement is because, this time, they gave a rough indication for the next gen announcement well in advance. Everyone knows it's coming in the next 3 months.
Actually, the "successor" messaging has always been aimed at the shareholders. That's also why they've been explicit in managing expectations for subsequent Directs.
Backwards-compatibility and Switch Online continuity is the only concrete technical info that they did reveal, and that, too, seems to be targeted at shareholders. Not having backwards-compatibility would risk alienating the existing user base. That's why they were so keen to at least drop this info ahead of the actual reveal.
@Qwiff
Yeah those times before we didn't know jack about what was coming. This time we kinda have some info. I sure hope the hype will be justified.
Don't worry America, I'm sure XBox will avoid the tariffs. You'll be able to play that.
@bones
Easy to say with hindsight but in the dark days of the Wii U I doubt even Nintendos most die hard fans would have expected the Switch to be quiet as successful as it has been.
I'm not a doubter by the way, just trying to offer a bit of sensible logic
I’ll shell out for a Switch 2 even if the Trump Tax jacks up the price to PS5 Pro levels, but I digress…
Interesting to see even rumors can be profitable, even though we got a little confirmed info.
I know very little about the stock market, but if there are other companies that match Nintendo's trend, I feel like you should be able to make a fortune just selling before a big announcement and buying back afterward. The stock traders' overinflated expectations seem to put even the most delusional superfans to shame.
@Anachronism @eaglebob345 I would avoid Nintendo stock at all costs. They don't give hardly any dividends and that is how most people make their money in the stock market. If you are going to invest into a company that doesn't give dividends you need to buy the stocks dirt cheap, i.e. NTDOY just after the Wii U era.
Then, in the USA, there is capital gains tax. After the sale your profits could be taxed anywhere from 30-50%. Not worth it.
The best way to make money is to pay off debt fast, stay out of debt, and live far below your means. This is more important than the stock market.
@prw_88 No worries, I'm way too risk-averse for any kind of gambling. I just don't get how Nintendo's stock keeps blowing up before a console reveal and dropping off a cliff afterward when anyone looking at long-term trends should know they're overvaluing it.
@Juga_Juga Thank you!
@prw_88 Long-term capital gains is 15%, and I believe you just have to hold the asset for a year or more. And whether a dividend is sent out or reinvested shouldn't make a financial difference.
@AllBLK @eaglebob345
Nintendo already moved some manufacturing to Vietnam in 2019 to mitigate geopolitical risk. Perhaps there is more of that they can do to get around them.
Even without the tariff threat, Taiwan is like 70 miles from Japan, so the Taiwan invasion threat could be worth decoupling their supply chain over.
@Thomystic Correct me if I am wrong but isn't capital gains also based off of income? I think less than 80k a year is 15% capital gains and more than 100k a year is much higher?
@prw_88 I wasn't aware of that, but it turns out it is tiered. It caps at 20% though. Hence Warren Buffett saying that his (on average) income tax rate is lower than that of his secretary's since most of his was from capital gains.
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