At the end of last week it was revealed that the shares of Nintendo had fallen as a consequence of the Switch’s poor sales in the last fiscal quarter. Now, The Japanese video game industry woke up today to one of its biggest declines since 1987.
Today, Monday, August 5, 2024, the stock market in Tokyo, Japan, reported a substantial drop in the shares of multiple video game companies, affecting not only Nintendo, but SEGA, Capcom, Sony, Square Enix, and more. Overall, Japan’s Nikkei fell by more than 12%, its lowest since Black Monday in 1987These are the blows that the companies had:
- Nintendo – 15%
- SEGA – 13%
- Capcom – 16%
- Nexon – 13%
- Cave – 23%
- Konami – 8%
- Sony – 6%
- Marvelous – 10%
- Cyberagent – 10%
- Koei Tecmo – 6%
- Square Enix – 5%
Now, it has been mentioned that this is a consequence of multiple factors at a global level. On the one hand, There is talk of a possible recession in the United Statessomething that would affect the performance of the video game industry globally. According to Dr. Serkan Toto, CEO of the industrial consultancy Kantan Games, he has also pointed out that rich people, those who move the stocks, act on instinct, and their reasons do not always have a solid basis.
For now, we can only wait to see how international markets react to these moves, as well as how Nintendo and the rest of the affected companies perform in the coming months. Let’s remember that the second half of the year is an important period marked by multiple major releases.
In the case of Nintendo, titles like The Legend of Zelda: Echoes of Wisdom and Mario & Luigi Brotherhood could help the performance of the Switch and improve its financial position for the remainder of 2024. In related topics, you can learn more about the recent fall in the Big N’s shares here. Similarly, this is the new advance of Echoes of Wisdom.
Author’s Note:
This is a natural thing, although the scale is larger than you might think. Stocks are constantly moving and, as Toto mentions, people with money often act on their instincts, rather than looking at the facts in front of them, so some of these decisions may sound strange.
Via: Nintendo Life
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