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Nintendo stock drops 7.3% after exclusion from Nikkei

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Nintendo’s stock has had a sharp decline after the expected inclusion in the Nikkei 225 did not happen. The Nikkei 225 is similar to America’s Dow Jones Industrial Average, which looks at the top 30 companies in America and their stock performance to help investors have a better understanding of market trends. The Nikkei 225 are companies on the Tokyo Stock Exchange that do the same.

Nintendo recently moved its listing from Osaka to Tokyo, probably for inclusion in the 225 list, but when this did not occur a 7.3% drop happened. This is the biggest drop the company has experienced in over 4 months. Tokyo analyst Takao Suzuki recently explained Nintendo’s exclusion from Nikkei:

“We believe Nintendo’s shares have been overvalued due to speculative demand, on the assumption that they would be included in the Nikkei. As this expectation has come to nothing, this appears to be the right time to sell.”

Time will tell if Nintendo will be able to bounce back from this stock freefall, but this is big news for investors.

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  • Nintedward

    Nintendo news is just a big mixture of positivity and negativity :/
    ”Nintendo is the best” ”Nintendo is doooooomed!!!!!!” and so forth.

    At the end of the day who cares? the only news that would concern me was that if Nintendo decided to stop making hardware, but this won’t happen anytime soon…
    All I care about is the GAMES not there Nikkei rating or whatever, irrelivant to me.

    • https://twitter.com/Onyzora Ony

      When I was a kid, games just appeared in stores and I was all like “omg omg omg”. Now, with all theses news, sites and informations, my stomach is full of ulcer, so much stress and hope that’ll be crushed anyways D:

      Knowing that (article) will not really help anybody (except the trolls who have another excuse to do their jobs). Nintendo will continue to live anyway, they were the firsts (sort of), they will be there until the very end :]

      • Nintedward

        Some of the industry and the community is embarrassing. They act like graphics and specs are the be all and end all of gaming eg: ”the WeekU Iz not nxt jen because it’s less powerfull”

        It’s like…. who the hell cares ? I’d rather play Xenoblade chronicles in 480p on a Wii than play ANY of the launch window games for PS4 and Xbox one. That alone proves how important graphics are. They make up like a 1/5th of a game at best.

        • http://about.me/overlordror Ashley King

          People get invested in ecosystems and don’t want to admit when a company they’re following blindly is making many missteps. This can be said for Microsoft, Sony, or even Nintendo.

          At the end of the day, I do hope Nintendo manages to turn their stock around, because right now the Wii U is a liability, not an asset. That needs to change in the future for the company to continue to succeed.

          • Nintedward

            True, true.

            It’s news worth reporting obviously! I was just saying personally it doesn’t interest me at all!

            Wiiu will sell better once the upcoming games arrive, that much is certain. I myself will be fine with Wiiu selling like Gamecube or N64… As long as I can keep playing the games, I’m happy. 3DS ensures Nintendo will be at least moderately successful for the next 5 years…

          • https://twitter.com/Onyzora Ony

            Still thinking there is a worldwide coalition which purpose is to prevent Wii U to be successful ~

          • Daniel Gonzalez

            I doubt the world is against the Wii U. Its stocks are down, but how often do they go back up? Lol.

          • jay

            Sometimes I doubt the illuminati exists. If they do they’re a very very small group.

          • Daniel Gonzalez

            It’s all conspiracy theories. I think that some type of group like the illuminati exist, but that’s just me. Either way, it’s the least of my worries.

          • Rich Garriques

            then continue to be blind

          • Nintedward

            It’s the illuminati… Sony drones the lot of em…

            Ps4 has a triangle button : illuminati exposed

          • Daniel Gonzalez

            I think the Iluminati have more important things to do than to keep the Wii U down. Like world domination. :P

          • Peter Lythaby

            And keep the Wii U down ;-)

          • bizzy gie

            Ashley is a part of the illuminati?!

          • Rich Garriques

            actually there to busy selling you the wii u so you can pay attention to it while they rip your tax money away to build your destruction.

          • Rich Garriques

            okay now your just being stupid , the Illuminati may seem like a joke to you but if you did more research you wouldn’t be making those jokes. in fact you’d be terrified to know how stupid you are being for even making them.

          • jay

            There is, but it’s not because they hate Nintendo products. I wish I could explain but no one “gets” it. No offense to anyone.

          • JBeauregard

            Agreed! How much of this bad press is created purely by the other console manufacturers? I mean, there is reason for some bad press, but the Wii U has taken a beating from every direction.

          • Sdudyoy

            I have a feeling that it will pick up after the price drop.

          • Daniel Gonzalez

            Nintendo will be depending a lot on their lineup this holiday. Price drop alone, won’t be enough.

          • Daniel Gonzalez

            .

          • https://soundcloud.com/rauschenmaschine Kristian Kouvo

            No. Wii U just needs some time and it will rule, just like the DS family did, like the Wii did and many other consoles by the N. You see, combine the sales figures of all N products and they still kick the ass against all other companies. That’s not just a fools hope, but pure math. Then think how much N has resources to invest in Wii U to make it fly. All it needs is few more games and the success will shut up all the nonbelievers face.

        • Metroid 33slayer

          It proves graphics aren’t important because you say so? You’re so self indulgent, you seem to think your opinion is omnipotent. Well you don’t matter as much as the developers and they want better tech to showcase their games.

        • David Porter

          Your opinion RE: playing Xenoblade versus any of the launch-window games for the PS4 may be the case FOR YOU, but certainly not for me, or (presumably) millions of gamers.

          I’m sorry, but technology changes, and consumers *expect and demand* that the technology they purchase today will have a certain shelf life (particularly with consoles). The power of these next-gen systems ISN’T just devoted to graphical fidelity; it’s just as much about ALL of the capability available (better AI, larger worlds, *true online multiplayer*, which Nintendo absolutely SUCKS at, etc).

          Right now, Nintendo is the one providing a 1/5th experience, and THAT is why they’re in such dire straits.

      • Clel

        Just the fact that you said ‘the trolls’ really drives in your point :O

      • JBeauregard

        Same here : / I find myself begging for Nintys console sales to increase. At times I worry about the quality of games that might diminish because of all the bad press. Then I think, ” shouldn’t I be more worried about surviving those 20 waves in Spliter Cell?!” Lol

    • Magnus Eriksson

      Do you think we will see another console (non portable) from Nintendo? Or the others for that sake? I kind of believe that the console business had their place in the history of gaming soon. Cloud gaming will probably take over in the end of this gen (about ten years from now). Who knows? Maybe Nintendo even will have the upper hand then.

  • SonicLucario

    Sounds pretty bad but then again Im kinda more focussed with the games

    • jay

      It’s not as bad as it sounds believe me. It won’t effect the quality of the games.

    • Ducked

      No it’s not that bad, just call 1-800-jay

      • DarkLegacy

        okay but while we do that, we have a badass downvoting yours and everyone’s comments

        • Ducked

          I noticed, not the first time it’s happened.

          • DarkLegacy

            well I just came on here and noticed that everyone’s comments have downvotes but at least they have some upvotes, and it’s probably a troll on here that’s giving them downvotes

          • Ducked

            Yeah his name is Simon Cowell

          • DarkLegacy

            really, I thought it was Justin Bieber

          • Ducked

            Nah Justin Bieber doesn’t know the difference between up and down

          • DarkLegacy

            Probably

  • Daniel Gonzalez

    Eh. Stocks go up and down from time to time. They don’t spell out doom or success, just pretty numbers that the average person doesn’t understand, nor cares to. No matter what happens to them on the hardware market, they’ll be fine for years to come.

    • Daniel Carvalho

      I also remember someone saying something about the recent economic crisis, and how other companies also lost their value on the market.

    • Ducked

      Dramatic alert!:

      WII U IS DOOMED! WII U IS DOOMED! WII U IS DOOMED!

  • Ducked

    $299 Wii U. LoZ WW HD Wii U Bundle. The new 2DS. Pokemon X/Y 3DS Bundles. And new software will save the day.

    • jay

      stocks going down isn’t really bad news as the stocks were shooting high a week prior. This news is neutral.

      Imagine I give you 5 bucks. The next day I take those same 5 bucks. Does that spell doom?

      • Ducked

        *sniff* *sniff* That wouldn’t be very nice :'( lol

      • Daniel Gonzalez

        That would basically just be breaking even. While it’s not doom, it’s not success either.

      • Magnus Eriksson

        The doom has never been on Nintendo as a company. Everyone knows they got more money than Uncle Scrooge. The doom concerns their products. And so far this gen has looked pretty shitty for the Wii U, and its very good reason that it will be the same in the future. As a hardware company they are probably done soon.

  • Rugmouse

    The initial shock of not being included in a major index has a negative connotation tied to it, as investors have been more and more prone to simply using ETFs (Exchange Traded Funds) that are built to mirror index returns. By not being included in the Nikkei, Nintendo will ‘miss out’ on those ETF investors.

    That being said, Nintendo’s stock is up quite nicely this year (over 18% AFTER this pullback). This news is likely a combination of investors that were hoping for ETF inclusion abandoning ship, along with some others that are simply taking profits. I believe the move is overdone and the stock should settle in the coming days.

    • http://about.me/overlordror Ashley King

      Very good analysis, thank you for that.

    • jay

      THANK YOU. If you read news last week they were to be included in Nikkei 225 and stocks shot up. When they were denied the same people pulled out. It’s a fun investors game.

    • Marcus Navarro

      It truly is a shame that this will inevitably not cross the ears of those shouting, “Nintendo is DOOOOOMMEDD!”

  • CEObrainz

    The average gamer shouldn’t need to care about the stock price of a company. Rather the games and hardware should be what we care about. Even if share price increases around or before the holiday season like I suspect it may, I’ll still say the same thing.

  • Marcos Crill Colon

    Yea they could at least point out there stocks been up 29 % this year so this little hit the there stock is nothing ..http://www.reuters.com/article/2013/09/03/markets-japan-stocks-nikkei-idUSL4N0GZ04J20130903

    • jay

      The hit is because the stock rose last week because they were to be included in the Nikkei 225. This isn’t good news, but it isn’t bad news either. Of course IGNorant sites are gonna put a negative spin on it. lol.

      • Magnus Eriksson

        Of course its bad news. It means that the price N. is setting is way to high compared to the stocks real value.

  • Emufred

    There was once a time when I just enjoyed video games and didn’t care about all this…

    • Will.F. Martinez

      There was a time when it was just all about the games and not the financials

  • incoherent1

    Investors are so fickle. I read several analyses that said Nintendo was excluded simply because it’s too large by market cap. In other words, their exclusion had nothing to do with the value or prospects for the company…

  • Michael DeVore

    The right time to sell a stock you believe is overvalued due to speculation is before everyone finds out that speculators are messing with the price. Selling after is just hind-site fueling speculative panic.

  • Peter Rogers

    ZZzzzzzzzzzzzzz

  • Arthur Jarret

    Time to sell? I thought that when stock of an otherwise generally stable company was at an all time low, it’s time to buy…

    The stock market baffles me… it’s why I never buy any turnips on sunday.

  • JBeauregard

    Stock markets are what has ruined business throughout the world. For the most part, businesses start to only focus on their bottom line and forget about value, quality they provide to their customers. I don’t think this is the case with Nintendo, though.

    • X3Charlie

      It is unfortunate, and to think they were originally meant to assist small business start ups.

  • jay

    To clear up the “Doom” and confusion:

    Nintendo’s value has been going up this year. Not sure why honestly. So recently Nikkei 225 announced Nintendo may be included due to their rising value. Stocks continued to grow obviously.

    Nikkei 225 then announced they “overvalued” Nintendo causing the people who jumped on the previous news to retract, causing this drop to happen.

    Sorry it’s the best I could explain.

    • Ducked

      Mr down vote must be back

      • Merrfn

        I doubt it. Jay has just has a bandwagon of haters.

        • Ducked

          I’m starting to realize

          • Merrfn

            Understandably. He does have some VERY ignorant, narrow minded views he expresses…

          • Ducked

            But he does make many good points. I don’t see why people hate on people, even when there comments our correct.

          • Merrfn

            He just has a certain manner about him. Hypocritical. Some of his points are valid, but then he says something along the lines of “if you like mature games with blood and gore you are so immature” which is immature in itself. That as an example.

          • Ducked

            True enough, I do the same thing sometimes without realizing it.

          • Merrfn

            Yes, but it is not as noticeable. But hey, we all say dumb shit on the internet.

  • http://people.ign.com/fliadaloisio fliadaloisio

    “this appears to be the right time to sell.” WRONG !!!! & EPIC FAIL!!! This is one of the old tactics of the stck market. Anyone that has Nintendo shares don´t even think of selling !!! It will be the worst desicion you will make in your life.

    • Magnus Eriksson

      Depends when they bought the stocks…

  • Fred

    Thanks Ashley, I love reading about the business side of things it’s always interesting to me.

  • Kaihaku

    If you want to make a quick turnaround on an investment, buy Nintendo stock now and sell about two weeks after Pokemon X/Y is released.

    It’s amazing to me that investors would sell the stock so desperately so soon before a major release like Pokemon. That’s beyond short sighted.

  • jrob23

    I own NTDOY and can say with confidence that this is a shakeout of weak hands. It’s the last ditch effort for the big boys to get cheap shares before it starts a pretty substantial rise over the next 6 months.

    • Nothing5555

      my problem with stocks is the price is all based on speculation and fears.

  • Magnus Eriksson

    Fire Iwata. Problem solved.

    • cs_shane

      Fire ALL of them and bring in the technology connected generation. That will solve the problem.

    • Merrfn

      Tomorrow: BREAKING NEWS! NINTENDO FIRES SATORU IWATA!

      The next week: BREAKING NEWS! DON MATTRICK LEAVES ZYNGA AND FILLS SATORU IWATA’S ROLE AS TEMPORARY CEO!

      Two days later: BREAKING NEWS! DON MATTRICK IS NINTENDO’S NEW PERMENANT CEO!

      The week after that: BREAKING NEWS! NINTENDO IS IN BANKRUPTCY!

      The morale of that story is to be careful what you wish for magnus…

  • Truthteller

    It’s over.

    • Marcus Navarro

      Lulz.

  • Andy

    Sales after September 20th will tell a lot about what the future holds for the Wii U. If sales don’t pick up after then I don’t know what will happen – but it won’t be good.

    • cs_shane

      Exactly. If sales don’t pick up even with the price drop + Mario, then the Wii U may be doom, maybe at least until Mario Kart. That is, if Mario Kart has the same effect that Mario Kart Wii did.

  • Donaald

    Considering that the company is worth 15 billion that drop is nothing, plus I can see being worth that much most mean Nintendo is almost unacquirable.

  • only god can judge me

    I will continue to stand by my wii u regardless of the sales up to date the wii u has some great software coming and I do not want to miss out on some of the best games that has yet to come.The wii u has yet to reach its full potential and I feel that some of its best years are still ahead regardless of the sales up to date zelda u alone is worth the wait for me.

  • http://nintendopapercraftvideos.wordpress.com/ Sam

    What a bunch of Idiots.

  • Antar Rodríguez

    as much as i admire nintendo an respect Iwata, i gotta say they should fire him, the decisions he has made ultimately have cost the company not only money but clients and reputation, and we all know that the head of a company must make the right decisions, its sad cause i do respect him a lot but what i stated is also true

  • Akatosh

    Sometimes I wish I was a kid and was too young to figure out the internet so that I could go back to the days of the GC where even though it was a slow-selling system I couldn’t care less. *sigh*

  • Michael Jurado

    Man I just can’t wait for the other systems to finally release and for everyone to finally figure out that the systems aren’t doing so great not due to the tech. but due to the fact that the economy is still CRAP

  • Joyous Killer

    O shit

  • https://soundcloud.com/rauschenmaschine Kristian Kouvo

    Well stop whining and just go buy the damn Wii U, so it makes everybody happy in the end. Stock figures will rise, games will show up and the console finally gets the approval it deserves. The console is fine, but people are sad whiners, so stop crying and buy it.