Nintendo Shares See Sharpest Decline Since October
Nintendo’s share price has this week seen the sharpest decline since October, such dramatic descent coming in reaction to SMBC Nikko Securities now predicting that the company will underperfom.
That came in response to their expectation that Nintendo’s entry into the smartphone market won’t contribute to their revenue until the next financial year, which ends in March 2018, and that Nintendo 3DS sales are slowing.
SMBC Nikko Securities analyst Eiji Maeda anticipates that the operating income that Nintendo will make in the new fiscal year will sit at around 30 billion yen (£253 million), which is below half the estimate that they made previously.
That saw the company’s share price drop by 7.6 percent, unsettled investors feeling wary about free-to-play application Miitomo that they believe will have “few in-game charges.”
That loss of confidence has come in Miitomo’s sudden delay, which has raised doubts over whether Nintendo can compete in the competitive smartphone market – even with their newfound alliance with DeNA.