Thursday, June 09, 2011

Nintendo Stock Watch

Nintendo's stock fell 5.7% yesterday, and is currently down anothet 5.2% today.  Pay very close attention today and tomorrow. If there isn't a rebound by the close of Friday, things will get very interesting.

Nintendo has two serious problems that need to be resolved before stock prices can rebound: 1) Prima Donna game designers who only work for themselves, and 2) Executives who refuse to discipline them.  This company has no direction, no focus, no plan.  Everything depends solely on the whims of Miyamoto.

The Wii will continue to be the company's flagship system for the next 18 months; it needs quality games and it needs them now.  Nintendo needs to address the 3DS situation quickly, and move aggressively against Sony's PS Vita, which is gathering a lot of positive buzz at E3.  They also need to resolve the problem of game controllers for the U console; only one tablet per system, really?!  Splitting multiplayer control between tablet and Wii Remotes will prove disastrous for developers.  Most will simply eliminate local multiplayer altogether.  And we haven't discussed potential lost revenue from the lack of accessories at retail.

Miyamoto's assertion that players could simply use a 3DS as a second tablet controller - a $250 portable! - is beyond outrageous.  The last royal figure who said, "Let them eat cake" lost her head.

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