Nintendo shares drop 10%, has 'little to do with company itself'
Despite a knack for printing money with its consoles, Nintendo's investors appeared less enthused today as its stock slid 9.7%, according to Reuters. However, analysts suggest that Nintendo is not culpable, citing a stronger yen and potential overselling by major investors.
"In the current market environment, investors rush to sell at the first sign of negative developments or exhaustion of positive news," said Mizuho Asset Management fund manager Yoshihisa Okamoto. That exhaustion of good news could easily be a pun for Nintendo's ever-present console shortage issue. The stronger yen is a legitimate concern, given it cuts into the profits for major exporting companies (of which Nintendo is one).
Sales of the DS and Wii platforms have largely contributed to the company's meteoric rise in recent years, and its stock has subsequently enjoyed a mammoth increase, as well. Ex-Nintendo President Hiroshi Yamauchi became the third wealthiest in Japan last year thanks to the rise in share value. Markets tend to fluctuate, and we estimate this week's Japanese release of Smash Bros Brawl will likely have a positive impact on Nintendo's stock.
[Via GameSpot]
