Yesterday, I had a little moan about Nintendo, prophesising their downfall. At the risk of being hysterical, it seems I'm not the only one worried about the company's future business plans. Despite the hum and buzz of the gaming world, stock holders are not impressed. Stocks are down 4.5% today following a 5.7% drop after the announcement of the Wii U.
The stock drops follow UBS Securities downgrade of Nintendo. They said, "it is difficult to see the Wii U or the 3DS capturing, once again, Nintendo’s unique Wii and DS fan base, which includes many people who previously had little interest in playing videogames."
The majority of analysts are unconvinced Nintendo can replicate the magic and money-making of the Wii and DS originals. It's a bit too early to start making judgements, we don't know the price or launch games yet, we don't really know much about the console. But anyway, he's a look at the initial reaction of the business world. Because, let's face it, no matter how well it goes down in E3, when launch time comes and it fails to sell, Nintendo will be left red-faced, empty pocketed, leaving the next-gen-console market wide open for Microsoft and Sony.
“It’s unclear who Nintendo is targeting with the Wii U and where it wants to go,” said Tokai Tokyo Research Center analyst Yusuke Tsunoda.
Tokyo-based market analyst Hiroyuki Fukunaga warned, “There are concerns that it may turn out to be expensive with the touch-screen controller.”
Jay Defibaugh, analyst at MF Global FXA Securities was a little more optimistic branding the Wii U "an interesting concept for its next-generation console.” But he was doubtful that the 3DS can really prove itself.