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130°

Nintendo Stock Down 40%, Future Hinges On Wii U

Today, the Big N slashed their FY 2012 earnings guidance by 82%. They also announced a huge price cut on the 3DS system from $250 to $170. These are the moments that value investing is made for. Was I wrong to buy NTDOY, Nintendo’s ADR, at $33/share? Well it is trading below $20/share today, so the answer has to be yes. Was I wrong to buy Nintendo at $28/share? Yes again. Was it wrong to buy Nintendo at $22/share? Time will tell. My investment time horizon on Nintendo is 3-5 years and the case for revenue growth will become more compelling as the Wii U rolls out. This coupled with more releases of quality 3DS titles could stem the bearish tide.

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donniebaseball4654d ago

We'll see how 3DS bounces back this holiday, but yeah it's critical that Wii U get off to a flying start or they might return to their GameCube like days of being irrelevant.

fluffydelusions4654d ago

NES/SNES were there best systems IMO.

disturbing_flame4654d ago (Edited 4654d ago )

Agree.
i also loved first gameboy.

WhiteLightning4654d ago

I wonder what would happen to Nintendo if the Wii U fails

Like a "What if" scenario

qface644654d ago

they would just move on and have to try again harder

neither the n64 or the GC were hot and that was in a row

donniebaseball4654d ago

I think the difference this time though is the games industry is very, very different than it was in the N64 or GameCube days. If Wii U sold very poorly, Nintendo would be in bad shape. Content is king, however, and they could become a hugely successful third party. Heck, they might even finally support phones and Facebook then. Their IP could be all over the place.

qface644654d ago

they were making less money during the N64/GC era than they are now so i doubt they are going to be crippled anytime soon

dabri54654d ago (Edited 4654d ago )

The difference between the n4g and GC generations is a matter of money. The success Nintendo had between the SNES to N64 to GC was far more gradual than DS > 3DS. The DS was a run away success. The 3DS has been extremely slow compared. Nintendo is publicly traded company. They answer to their stock holders. They stock just dropped 40%. This is a vast drop compared to previous slower gens and far more of a shock to the system.

I would compare it to this. Imagine being CEO of a company making 250K a year. Now imagine, you decide to take a new job and without knowing it beforehand, you now only make 40K a year. Your family is going to notice and they prob wont be happy with the changes that will need to be made.

If you were mirror the same drop across an entire stock market, they would call this a stock market crash and this would normally lead to a economic depression.

Nintendo isn't out of the game yet, but if Wii-U also fails to take off, they really could be in trouble.

BattleAxe4654d ago

Nintendo's stock just dropped 40% which is a massive drop, and investors have got to be getting nervous. If the WiiU fails, then I think they will turn into the same kind of company that SEGA turned into after their failures. I think they would get out of home consoles entirely, and just make money on selling their games as a 3rd party developer. I'd be willing to bet that they would remain in the handheld market since that has arguably been their strongest selling product.

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zerocrossing4654d ago

Then I mite have to give up gaming...

EasilyTheBest4654d ago

If the Wii U fails along will come Microsoft with a load of money so they can finally get the Japanese market...

EYEamNUMBER14654d ago

microsoft once offered 25 billion for nintendo when the GC didn't do so hot even back then they passed

Inside_out4654d ago (Edited 4654d ago )

.
This is HUGE and shows that the shareholders are losing patience with Nintendo.

The price cut will not be enough. Expect the hammer to fall. Nintendo waited to long to react to market conditions.

They really needed the Wii-U to launch this year but their stupidity and more importantly...GREED, got in the way as they continue to sell their severely out dated gaming devices.

For the bargain hunters out there it will be a great time as Nintendo starts dropping prices to where they should of been in the beginning.

EYEamNUMBER14654d ago

nintendo waited to long to react to market conditions? how is 4 months too long?
im surprised they reacted that fast no one was expecting a 3DS price cut for quite some time

dabri54654d ago

One could argue that the price should of been lower from the beginning. The market has been bad for years now. Nintendo decided on the price of the devise a good while before they released it. So yes, it could be said, "they waited to long to react to the market."

RockmanII74654d ago (Edited 4654d ago )

The N64 was Nintendo's last great console, at this point I wouldn't mind them becoming a publisher like Sega and making Mario and LoZ games for Sony and MS. It would just be one less console I'd have to buy.

Cpt_kitten4654d ago

"future hinges on wiiu"

or they will go back up along with sales with the next mario title

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80°

Nintendo's Massacre Of The 3DS And Wii U Is Finally Complete, Regrettably

Hanzala from eXputer: "The cruel hammer of Nintendo has fallen. Farewell, 3DS and Wii U, you surely brightened my life and many others; you won't be forgotten."

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280°

Xbox's Preservation Step Sets A Much-Needed Example, Especially For Nintendo

Hanzla from eXputer inquires: "If Xbox can care about preserving its games and legacy, what exactly is wrong with Nintendo, trying to kill game preservation single-handedly?"

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purple10111d ago

Ahh yes the good old game preservation of saving all your games to a removable hhd on the Xbox 360, taking it round your mates house, setting up multiple tvs to
Be met with “save data corrupted, please re download”

Or how about removing 360 games
From the store
, download them now or else, and, better hope to god that save data doesn’t corrupt, or it’s lost for ever

Nice one ☝️

Zeref10d ago

It's better than what Nintendo and Playstation is doing. It might not be perfect but at least they are TRYING. Unlike the others.

DarXyde10d ago

Trying? Take off the blinders for a moment, mate.

1. A failure to preserve games is just that: a failure to preserve games. Don't try to sugarcoat it: NO ONE is doing it properly. Better than awful is nothing to write home about.

2. At the time of this comment, isn't it the case that you need an internet connection to play Xbox games even if you buy physical discs that are hardly in circulation anymore? I don't have a Series X and I can't verify, but I think that is correct. I'm fairly certain you can at least play PS5 games at version 1.0 (not much of a win really when many games require day one patches). I think Microsoft's all digital, licensing approach is by far more aggressive than anyone else's. They really try to push you to game pass where you lose your entire library by umm.... Skipping a month of payments.

I don't think anyone is doing it right whatsoever. Don't get me started on Nintendo, who goes after anyone looking to preserve their games better than they ever would with extreme litigation.

Don't be a simp for any of these companies. Get it together.

PhillyDonJawn10d ago (Edited 10d ago )

@DarX never speak on Xbox again. You lost all credibility with your internet connection comment. Smh you have 0 clue and misinformed yet speaking on something you don't no squat about.

Einhander197210d ago

What has Sony done exactly? You guys keep deflecting to Sony but I am not actually seeing any results, and ai am certain nothing that you can come up with even comes close to what Microsoft has done and what they have tried and failed to do, like tie all your disks to your account on xbone.

Microsoft removed their whole indie section when they moved to the xbone because they were going to only allow games on the service that came from a publisher, id@xbox started after xbone launched and it only exists because Sony embraced indie and Microsoft was forced to cancel their plans and reverse course.

And every single game that was part of games for windows live including disk games (I have gta 4 on disk that won't work) so hundreds of games that use that DRM no longer work unless the company themselves patched it out which of course very few did.

MrBaskerville10d ago

Not trying. Tried. they killed of the backcomp program years ago. They set something up again, but sounds like it's more of an attempt to save the current library on whatever they are planning next. With luck they save everything and more, but let's see. I could see them killing off parts of the OG xbox and 360 libraries. Can't imagine that they would allow us to play Forza 5-7 in the future.

With that said, I do like what they've done and really wish they could have done more.

shinoff21839d ago

Zeref

So killing off physical media is trying what exactly. Ms don't really give a fk if you think they do your kidding yourself.

Profchaos9d ago

They are not trying this team is established for forward compatability the team is. It interested in preserving Xbox or 360 games.

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isarai10d ago

Is that why Hellblade 2 is digital only?

Zeref10d ago

Just because it's digital only doesn't mean you can't preserve it. Just put it on an external and you have the exact same functionality of what a disc does.

MrNinosan10d ago

Guess you're trolling, but if you actually think that's how it works, I'd recommend buying some braincells.

mkis0079d ago (Edited 9d ago )

Volitile vs nonvolitile data. A disc will not corrupt either. A drive can be corrupted.

Einhander197210d ago

This is just a scammy PR move to distract from the fact they are going digital only and trying to push streaming and subscriptions only.

No gaming company has pushed harder to remove ownership than Microsoft.

Without discs there is no preservation, preservation can't be done by the rights holders it can only be done by the consumers, anything else is a lie.

10d ago Replies(3)
Einhander197210d ago

Anyone remember xblig which Microsoft removed their whole 360 indie section removing hundreds of games from people?

10d ago
10d ago
Zeref10d ago

Do you know you can put your games on an external and preserve them that way? There are no benefits to discs. ZERO. Idk why some of you are still obsessed with them.

DarXyde10d ago

Because games like Persona 5 exist. It's STILL V1.00. On Playstation, that's a win because 1.00 is installed on the disc—no need to download anything.

If a game does not require any updates, it's all on the disc.

Extremely low bar in the modern era, of course. It's not much of a win by any stretch.

But for now, physical media does have a purpose, at least on Playstation.

Einhander197210d ago

That is factually not how game licensing works, try plugging your hard drive into someone else xbox, It's not going to work, and it won't work if the licensing servers ever go down.

Einhander197210d ago

Anyone remember games for windows live.

I have around a dozen games, some on Steam itself that will not work because Microsoft shut off the licensing servers.

BehindTheRows10d ago (Edited 10d ago )

I do. I STILL have games (Gears of War being the big one) I cannot access because Games for Windows LIVE is total garbage and no one has held Microsoft accountable.

Zeref10d ago (Edited 10d ago )

You don't have an Xbox apparently. Because you can 100 percent plug in your external and play games from it on any Xbox console lol. You just have to be logged in to prove ownership.

Chevalier10d ago

"You don't have an Xbox apparently. Because you can 100 percent plug in your external and play games from it on any Xbox console lol. You just have to be logged in to prove ownership."

Damn how many times do people got to explain your idiocy to you? You can take a copy of Persona 5 like someone used as an example and play that game on ANY console WITHOUT logging in which means I can lend the game to a friend without internet and they can play my game. Can you lend your hard drive to anyone without logging in for them to play? NOPE. That is a huge difference and if you think otherwise then sorry you're an idiot.

Tacoboto10d ago

"No gaming company has pushed harder to remove ownership than Microsoft."

Ubisoft is literally erasing games people bought from their libraries... My PS1-3 discs are useless on modern hardware. Nintendo's re-published and resold almost their entire Wii U library, and the eShop is completely dead with no BC mechanism in the Switch software. Microsoft publishes everything they make today day one on Steam and Xbox/Windows. Sony only brings to PC the titles they think you might want some years later and Nintendo won't even design a functional long-lasting joystick.

You're absolutely trolling and not serious if you think Microsoft today is the worst offender.

shinoff21839d ago

Yay steam

Not everyone fks with computers though. The disc is still the best way as a console player. Period.

Tacoboto9d ago

How do Sony and Nintendo feel about these discs from 2001-2013?

Don't be stupid, you know Xbox is the best at this today.

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Hofstaderman10d ago

Nobody wants this. Sales or the lack of it in the case of XBOX is very telling. I wonder how the adorably all digital series X will fare. Adorably dismal perhaps?

crazyCoconuts10d ago

Only time will tell, but for from someone like me suspecting that Xbox is trying to gracefully exit the console market, that "forward compatibility" team is trying to get Xbox games playing on Windows PCs. I mean, it's nice that they're not planning on exiting with a "enjoy your games while the hardware still works" message, so that's nice. They still have a brand to protect via Microsoft so probably feel obligated to have a better exit strategy.

Xeofate10d ago (Edited 10d ago )

That is not their plan, their plan is to transfer users accounts to the cloud.

Phil Spencer himself said as much a few months back, plans could have changed but I think people are reading way too much into one statement where Phil said he would allow Epic on xbox because he wants to be able to sell xbox games directly on other platforms. Aka, instead of selling Sea of Thives through PSN he wants to have an xbox store to sell his games on PlayStation without giving PlayStation any money.

Again, it's extremely unlikely that Phil plans to put PC on xbox and licensing would prevent them from just giving out other publishers games purchased on xbox copies of thier games on PC, Microsoft does not own their games.

crazyCoconuts9d ago

The thing that doesn't align with the cloud strategy is the giving up on exclusives. You'd still need strong exclusives for cloud streaming - it's still a "platform" , just with a lower upfront hardware investment. I feel like they've learned what PS learned with PSNow long ago. We're not ready to stream games and it's only gonna lose them money to try at this point

FinalFantasyFanatic9d ago

I would love that, I'd buy up some of the Xbox games if they could run on PC, like the Rare Replay, Lost Odyssey and Dead or Alive Ultimate, probably a pipe dream though.

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90°

Nintendo's War Against Player-Made Content Will Hurt The Company In The End

Danish from eXputer: "Nintendo has historically gone against player-made content and emulation of its games. This has done much to harm the company's image."

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XiNatsuDragnel17d ago

I agree nintendo hire some these folks to help in your games it'll help imo.

banger8816d ago

They need to stop announcing these mods and fan remakes until they're finished. Finish it, upload it, and then if Nintendo dmca's it tough shit. Once it's online, people can share it around, even if the original download gets taken down.

Jingsing16d ago

True, but most modders need constant admiration during the process to motivate them.

PRIMORDUS16d ago

Yup, once it's a torrent nothing can be done Nintendo is helpless at that point. But it would be wise if they just had a site on the dark web, it's also easy to use with Tor and no one will bother you.

mastershredder15d ago

This is all coming from the mouth of short-sighted fandom and grifting madness.
No.... it wont. There is a clear defined reason why they don't. This is nothing new. Make your own shi7 from your own original ideas especially if you are trying to capitalize of it it. Duh.

Yeah, hire people that have zero respect or understanding for an established process. Wow. Yep. Totally makes sense.

shinoff218315d ago

Those guys that made that sonic game got a gig from sega or something along those lines and that game was dope as hell. One of the best sonics as of late.