Topic: Nintendo's Stock Price Reaches Two Year High

[Steel Diver]

Western sales spur increase in share prices.

http://www.nintendoworldreport.com/news/35002

Nintendo Co. stock price increased four percent hitting 14,050 yen, the highest price since June of 2011.

North American sales of the 3DS, and titles including Animal Crossing: New Leaf, led to the increase. Other factors play into the rise of share prices include reports indicating China may get rid of its ban on game systems.

[Khushrenada]

Yes! Nintendo has returned to profitability in a short time. Hopefully this means that they can finally move onto other projects like F-Zero without having to worry about making shareholders happy anymore.

And don't anyone else dare tell me otherwise!

[TrueNerd]

So wait you're telling me that all those articles I read that said Nintendo should go 3rd party or make phone games were short sighted and stupid and ignorant of the past?

[RPG_FAN128]

Yes.  Plus consider it was for this VERY reason that Nintendo decided they should make a zillion Mario games. I wonder what the stocks will be like when they start to see the light of day (and also see the wallets of the consumers).  Personally I'd rather play a game like Radiant Historia or Etrian Odyssey IV...but alas those games never sell as many copies as the lowliest of Mario games.

[broodwars]

Yes! Nintendo has returned to profitability in a short time.

That's not what this means. A company's stock price != profitability, merely that stockholders believe they will be profitable...or at least prosperous enough to raise the stock price to an acceptable level to Sell their shares.

[TJ Spyke]

Yes! Nintendo has returned to profitability in a short time.

That's not what this means. A company's stock price != profitability

Precisely, look at Apple and how they reported their profits went UP but their stock price dropped because investors expected profits to be even higher.

[Khushrenada]

And don't anyone else dare tell me otherwise!

What part of don't anyone else dare tell me otherwise did you not understand?!
But yes, thank you all for coming in to clear this up. I would have had no idea that I was wrong had you not so bravely stepped in to tell me otherwise. 
 

[Mop it up]

I'd guess they also probably expect Nintendo's upcoming lineup to be big sellers, considering how well previous entries have done.

[Kytim89]

I would not doubt that Nintendo's stock prices have grow is because of digital sales. Remember that every time someone buys a Nintendo game off of the eShop that is all money into Nintendo's purse. There is no retail cut in the sale. This is why I hope Nintendo embraces more deals and purchase incentives for their eShop games. If I buy Steel Diver for $4.99 then they give me $9.99 in credit for purchase of something else.

[UncleBob]

Wait - you want to buy a game for $5 and be given $10 as well?

That's a good deal.

[smallsharkbigbite]

Yes, I would buy all games digital if I received double the amount spent in credit.  That would sure usher in the digital era. 


I don't want to tell anyone otherwise, but this isn't because the Wii U is becoming successful.  The last 2 years were marred by poor Wii sales and an atrocious 3DS launch.  Now the 3DS is becoming a machine and Nintendo has had plentiful 1st party software to support it.  I'm also wondering how much of a speculator bump the share price got because of China looking to remove their console restrictions.  People may think that it could bump Wii U sales and help them turn this into quick flip stock. 

[NWR_insanolord]

The 3DS has been killing it for a while now, so I don't know why that would cause a sudden jump in the stock price. The China thing could be a factor, but I'd wager the recent uptick in Wii U sales combined with the relatively strong software lineup it has for the rest of the year played a part.

[Ceric]

I think I heard something about Japan encouraging regular people to invest in one of the Nintendo Stock Holder briefings.  That could be a factor.

Playing Earthbound on my Wii U has reminded just how much I like playing games on the system.  I can be with my family and still game.  Shame its going to be $250+ for that ability on PS4.

[Luigi Dude]

The 3DS has been killing it for a while now, so I don't know why that would cause a sudden jump in the stock price. The China thing could be a factor, but I'd wager the recent uptick in Wii U sales combined with the relatively strong software lineup it has for the rest of the year played a part.

Even though the 3DS has been doing good for awhile now, Animal Crossing gave the system a huge boast in America and Europe for the month of June.  I'd imagine this is sending the message to investors that if Animal Crossing could do that in the Summer, then Pokemon having a worldwide release in October with the holiday season starting a month later is going to make sales go crazy this holiday.

[UncleBob]

I wonder if any of this has to do with investors getting a better idea of what Microsoft and Sony are offering combined with early feedback from the market via pre-sells.

[broodwars]

I wonder if any of this has to do with investors getting a better idea of what Microsoft and Sony are offering combined with early feedback from the market via pre-sells.

If that were the case, wouldn't the stock be dropping?  The pre-orders for both consoles are stronger than their predecessors', 3rd party support on the Wii U has almost dissipated altogether, and there's no question that the PS4 & Xbone are on a completely different tier than the Wii U.

No, this feels like a speculator bump resulting from the 3DS' success this year and what are likely to be completely unfounded projections of the Wii U's Fall lineup sales.

[UncleBob]

Have any official numbers on pre-orders be released?  I know there's rumors and such, but those rumors don't seem to match up with much in reality.

[broodwars]

Have any official numbers on pre-orders be released?  I know there's rumors and such, but those rumors don't seem to match up with much in reality.

I can't find any concrete numbers, just frequent mentions of percentages.  That said, reportedly the pre-orders on both consoles are sold-out nationwide in NA.  I think Pachter speculated that number around 600,000 consoles in one story I read.  Meanwhile, I walked into a local GameStop on Black Friday afternoon last year and bought a Wii U Deluxe model, and the thing sat on store shelves throughout the Christmas holiday.  That should give investors some idea where the wind is blowing.

[broodwars]

And because we can't edit Talkback posts, here's the link to the article with Pachter's projections: link

[UncleBob]

"Selling out" doesn't mean much when they don't release numbers.  I recall on the PS3, we had two systems shipped to our store at launch.

And quoting Pachter is like quoting VGChartz. 

I think both systems will do just *fine*, but I think they'll both see a similar slow start to adoption, similar to the Wii U.  I just get the vibe that regular joes aren't ready to upgrade their PS3/360s just yet.  The fact that so many of the big titles are being released on PS3/360 *and* PS4/XBO isn't helping them get encouraged either.

[Ceric]

PS3 is going to lose support first due to sell.  The 360 will probably suffer the MS Curse of users who don't upgrade.

[NWR_insanolord]

I'm pretty sure there were a lot of reports that the Wii U was selling out preorders a year ago. That alone doesn't mean much.

[Luigi Dude]

I'm pretty sure there were a lot of reports that the Wii U was selling out preorders a year ago. That alone doesn't mean much.

Yep

http://wiiudaily.com/2012/11/wii-u-pre-ordered-more-than-wii/


Pretty much shows why people shouldn't put too much faith in pre-order sales since they don't represent what the actual general public is going to do.

[pokepal148]

perhaps they know something we don't (pricedrop)

[NWR_insanolord]

perhaps they know something we don't (pricedrop)

If they somehow knew about an incoming price drop that the general public didn't, it would be illegal for them to buy or sell the stock because of that information.