Their is no doubt that Nintendo had the superior E3 presentation this year especially with the update on Animal Crossing: New Horizons which launches on March 20, 2020. According to the company had originally planned for a 2019 Holiday release but decided to delay it just a bit for some more fine tuning. Most gamers and fans we’re fine with this decision, the investors however, had a different opinion about this. According to the Financial Times, Nintendo suffered a serious stock plummet due to this announcement, so much so that they have now lost approximately $1 billion in market value.
Their shares dropped more than 3.5%, which constituted the massive loss in stock for the company. Clearly this had a major impact on the investors, as some of them probably hoped to see the game release during the holidays. This makes sense on statistical standpoint, but Nintendo is a bunch of perfectionists, and they won’t release an in house game unless they feel that it’s completely ready for the public to play.
In addition, the loss of stock is also due to the lack of reveals for the rumored smaller Switch system, which would cost less money to purchase. Despite saying that they weren’t going to announce such a system, Nintendo received a nice boost in the market thanks to this little tidbit. Now that the conference is done with, it’s not all that surprising to see the investors reneging on purchases.
Unfortunately, people who deal in numbers and finances don’t seem to empathize with the developers in these types of situations, and this recent transgression of Nintendo’s stock makes that point more evident than ever. Regardless of this recent turn of events, Nintendo will more than likely bring the investors back in their favor when all of the titles that are launching for the remainder of 2019 sell out instantly, making them loads of money in the process.
Published: Jun 12, 2019 12:09 pm