Just a few days ago we reported that Nintendo stock was skyrocketing at an outstanding pace but that success has now come and gone.
In a dramatic twist of events, Bloomberg reports that Nintendo shares have now had its biggest drop in 26 years. A sharp contrast to the earlier success story of their best single day stock price increase since 1983. The cause of both the success and major downfall of the shares come from the hit mobile game Pokémon Go. The Verge places the cause of the Nintendo share plummet on investor unfamiliarity with the gaming company. After Nintendo revealed it did not own the Pokémon property and was not making the majority of the profits investor confidence diminished.
Before the release of Pokémon Go, Nintendo had struggled in its gaming business. Their flagship product, the Wii U, was considered a major flop. Not only did the console not keep up with previous competitors Xbox 360 and Playstation 3, it was left behind the technological divide by the immediate release of the Xbox One and PlayStation 4. With its sights set on the future, Nintendo is set on delivering a new console experience which is code-named NX. Not much is known about the device but it is slated to release next year missing out this year’s holiday shopping season.
The Pokémon factor may have made Nintendo a force to be reckoned with but it also caused collateral damage in one of Nintendo’s first mobile gaming outings. With the small taste of success, it could be too hard for Nintendo to ignore the potential profits and may go all in with mobile gaming. With properties like Mario, The Legend of Zelda, Donkey Kong, and more Nintendo could indeed take over the gaming world once more. The company roadmap may one day come to a fork in the road where Nintendo will have to decide whether or not it wants to place greater focus on mobile gaming or continue to support its handheld device the 3DS. Either way, at the pace Nintendo stock is plummeting, any decision will almost certainly improve its current predicament.
For more news like Pokémon Go interrupting a State Department ISIS meeting follow us @TICGN.
