Nintendo shares hit five-year low

Nintendo shares hit five-year low

Nintendo shares hit five-year low

Nintendo's stock price has slumped to its lowest level in five years in the wake of yesterday's Wii U announcement, with analysts questioning whether the Wii's success can be repeated by its successor.

Bloomberg reports that Nintendo's stock tumbled 5.7 per cent to ¥16,930 per share at the close of trading today in Osaka. More than 2.2 million shares were traded, more than three times the six-month daily average of 720,000.

Yusuke Tsunoda, an analyst at Tokai Tokyo Securities, said that Nintendo's failure to show any games running on the system – in-game footage shown during the conference was taken from PS3 and Xbox 360 games – or reveal a price or release date was behind the slump in market confidence.

"There were high expectations from the new version of the Wii and this fell far short," Tsunoda said. "People had expected to see something more at a big event like E3, but there really wasn't anything more than what's already [been] reported."

Announced yesterday during Nintendo's E3 conference, the Wii U controller features a 6.2 inch touchscreen, and allows for play to be stopped on a big screen and resumed on the small screen. Company president  Satoru Iwata said the new console was intended to keep hold of a market considerably expanded by the Wii, while also wooing core gamers.

"As an industry, what we haven't yet achieved is a game platform that is equally satisfying for all players," he said. "This is exactly what we intend to create with our new home platform…It will let everyone see games in a different way."

A host of thirdparties have already enthused about Wii U, with Ubisoft working on two brand new IPs as well as ports of Ghost Recon online, Rabbids and Assassin's Creed for the platform. Nintendo plans to release Wii U in 2012.

Source: Bloomberg