Nintendo Stock Downgrades Due to Dwindling Demand Concerns
By Shawn on Thursday, March 20th, 2008 at 7:38 PM PST In Game Companies, Game Consoles, Game Platforms, Games, Nintendo, Nintendo, Nintendo, Portable
Nintendo stock has been downgraded by KBC Securities Japan due to concerns that the demand for the Wii and DS is waning. Shares went from “buy” to “hold” as prices dropped 30% to JPY 57,500 (EUR 371.2 / USD 575.5).
KBC Securities analyst Hiroshi Kamide told Bloomberg the company believes “that it is reasonable to expect a tougher trading environment.”
Although Nintendo has raised its guidance three times over the past year, the rise of the yen will devalue overseas sales.
It’s hard to imagine that demand for the Wii is going to fall off that abruptly over the next fiscal year. More people I know want to buy one than already have one.
The PlayStation 3’s momentum will soon override that of the Wii’s.
@Sessava
To what momentum are you speaking? You mean the victory of Blu-Ray over HD-DVD…..Go movies….don’t ya think Sony should concentrate more on making VIDEO GAMES!!!! for it’s VIDEO GAMES console?…..
First of all, isn’t it quite normal that demand for game consoles diminishes by this time of the year? At least compared to the holidays? Nobody can expect the same sales to keep up all year long.
Anyway, that’s in Japan were sales are slowing down…. in the US it is still hard to find Wii consoles due to high demand. GameStop just made public that they can’t keep them in stock for very long. Go to the local Best Buy and 9 times out of 10 they don’t have a single Wii. My local Wal-mart has a sign on the gaming section that reads “Wii don’t have Wiis… don’t bother to ask”.
On top of that, sales of Wii in Japan might have slowed down due to the fact that there just aren’t many consoles to go around after the holiday season and the high demand for them in other parts of the world.
Regarding the Blu-ray “victory”… c’mon, you wanna know what Blu-ray won? They won 1% of the home video market. That’s how much they actually have in comparison to regular DVD’s. It will take DECADES before the format even get’s half the market. The only true winners were consumers, who can now buy very cheap priced DVD movies thanks to the new format war.