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Is Nintendo's mobile move more of a marketing tool? (Shares fall 12%)

V

vinnygambini

Why are strippers at the U.N. bad when they're great at strip clubs???
Iwata-san's recent comments on Nintendo's new mobile strategy may not have the impact investors/analysts seek and I think many are realizing as such (and profit-taking):
In the digital world, content has the tendency to lose value, and especially on smart devices, we recognize that it is challenging to maintain the value of our content. It is because of this recognition that we have maintained our careful stance.
Click to expand...
[Our goal is for mobile users] to be interested in Nintendo IP and eventually to become fans of our dedicated game systems.
Click to expand...
Nintendo does not intend to choose payment methods that may hurt Nintendo’s brand image or our IP.
Click to expand...

The above, to my understanding, seems to imply that the mobile platform will be used as a marketing tool as oppose to one that will generate record-breaking revenue. Have a touch generation or Mario vs. Donkey type-esque game appear on mobile devices in the hopes for those consumers to transition to their premium offerings, consoles.

Iwata-san previously mentioned that Nintendo will place a bigger emphasis on IP licensing and I see this strategy as such. During the NES era, Nintendo licensed their character Mario on everything, cereal, bed sheets, etc, and I believe this is Nintendo's attempt to regain market share/relevance in a way, by appearing on people's everyday devices (mobile, tablets).

Thoughts?

http://time.com/3748920/nintendo-mobile-games/
https://www.google.ca/finance?q=OTCMKTS%3ANTDOY&ei=82ULVYmvJ8Pz9AaOloC4Aw
 
N

neogaffer1

Banned
Wasn't it climbing super high right before this? Is that percent relative to that peak or does it relate to before the announcement? Either way, it's likely because people saw their stock suddenly went up in value and wanted to cash out at a higher price while they could.
 
T

thenewjeva

Member
Using mobile apps as marketing for their dedicated platforms has been stated time and time again by Iwata for the past year now. Don't know what exactly that entails for the games on mobile. Probably similar to the various Flash games that they made in companionship with some of their releases.
 
K

Kouriozan

Member
It was bound to happen, raising too high too fast, then people (investors) let the hype die a bit and become realistic again.
 
M

Mushroomer25

Member
... After a 25% spike.

This is just how stocks work. Speculative investors got hot to the mobile news, bought up shares, then started dumping once the peak occurred.
 
N

NotLiquid

Member
People got overzealous about Nintendo's mobile announcement, took a step back and told themselves "wait a minute" and calmed their tits.

If this is relative to the insane surge we already saw then that's not really that big of a deal. Speculator bubbles only last for as long people don't have common sense.
 
K

KingHippo1967

Member
It's hardly a crisis - the share price is still much higher than it was before the announcement. Don't forget it spiked on Tuesday then spiked another 25% on Wednesday.
 
I

III-V

Member
Plummet is the best time to invest. Nintendo makes mistakes, but I am not sure that getting into this will hurt the bottom line. Saying this, I have no plans to invest or play the mobile games, but time will tell.
 
H

HiroTSK5

Member
So long story short, Nintendo has no drastic plans for the mobile market and yet has still managed a significant spike in their stocks... sounds like good news for Nintendo and sounds fine by me.
 
B

beril

Member
Kindof expected that the shares would fall down a bit after the initial crazy bump. The notion that Nintendo would suddenly be worth 60% more because they said they're going to make some smartphone games is rather silly
 
V

vinnygambini

Why are strippers at the U.N. bad when they're great at strip clubs???
Sandfox said:
Why do investors think mobile automatically means insane revenue?
Click to expand...

Many believe (analysts & investors alike) that since Nintendo own some of the largest IP's in the gaming medium, that will translate well into mobile offerings.

Clash of Clans & Puzzle & Dragons baramoter of success seems what they expect from Nintendo but like I mentioned, Nintendo's foray into mobile, judging by Iwata-san's comments sounds much more as a marketing tool, as oppose to the revenue from those games mentioned.
 
7

7DollarHagane

Banned
It had to fall off. No products are coming anytime soon. Why hold on to shares that long if you're speculating on app store revenue. That shit changes hourly.
 
O

Ozium

Member
the price went up and then some people sold their stocks for profit and the price went down

shocking news!
 
K

kirby_fox

Banned
That strategy is exactly what I expected. It's also, I'm pretty sure, what they've been saying for a few years now.

I'm curious at how well it'll work...
 
W

watershed

Banned
The knee-jerk Nintendo threads are getting funny. It seems every OP has either figured out what the NX will be or knows why Nintendo is still doomed or not.

This stock "tumble" is just investors coming back down to earth a bit after the last 2 days of spikes. Things will settle even more until Nintendo begins to roll out full details of this new partnership with DeNA.
 
L

Led_Zeppelin

Member
I think its the worse approach they can have. Core gamers will stand a mobile app/game that works as an extension of their core experience if they can gain something out of it, for example the NBA 2K companion app or the FIFA one.

But mobile gamers don't seem to work on that same pattern, EA already released apps for AAA titles like Dead Space and Battlefield (I am sure about the Dead Space one not about the Battlefield one) and they have failed to transition those gamers into their core experiences, in fact EA saw better fortune on Mobile with franchise and games build around the models that do work on mobile, like f2p and microtransactions.

I doubt there is a single case in the mobile market where an existent core franchise saw an increase in their sales YOY thanks to the penetration and exposure a popular mobile app based on thee same IP. I think the only cases of success are IPs that started as mobile ones and then making the jump to consoles/handhelds. I doubt Nintendo will succeed in turning mobile customers into console customers.
 
S

shark sandwich

tenuously links anime, pedophile and incels
If I had Nintendo stock and saw it spike 60+ percent in two days then started to decline, I sure as shit would've sold it too. Not surprising at all.
 
R

random25

Member
The stock is just undergoing correction. It's quite normal for an overbought stock. Traders just took advantage and sold while they can still profit. It's still up in the air how much gain Nintendo will get out of mobile strategy as they have yet to release a single game in the said platform.
 
B

BeatResetsTheWorld

Banned
Led_Zeppelin said:
I think its the worse approach they can have. Core gamers will stand a mobile app/game that works as an extension of their core experience if they can gain something out of it, for example the NBA 2K companion app or the FIFA one.

But mobile gamers don't seem to work on that same pattern, EA already released apps for AAA titles like Dead Space and Battlefield (I am sure about the Dead Space one not about the Battlefield one) and they have failed to transition those gamers into their core experiences, in fact EA saw better fortune on Mobile with franchise and games build around the models that do work on mobile, like f2p and microtransactions.

I doubt there is a single case in the mobile market where an existent core franchise saw an increase in their sales YOY thanks to the penetration and exposure a popular mobile app based on thee same IP. I think the only cases of success are IPs that started as mobile ones and then making the jump to consoles/handhelds. I doubt Nintendo will succeed in turning mobile customers into console customers.
Click to expand...

Man, you've got Nintendo's whole strategy figured out before they've even figured out what they want to call their new system
 
V

vinnygambini

Why are strippers at the U.N. bad when they're great at strip clubs???
watershed said:
The knee-jerk Nintendo threads are getting funny. It seems every OP has either figured out what the NX will be or knows why Nintendo is still doomed or not.

This stock "tumble" is just investors coming back down to earth a bit after the last 2 days of spikes. Things will settle even more until Nintendo begins to roll out full details of this new partnership with DeNA.
Click to expand...

Ozium said:
the price went up and then some people sold their stocks for profit and the price went down

shocking news!
Click to expand...

1st sentence: Iwata-san's recent comments on Nintendo's new mobile strategy may not have the impact investors/analysts seek and I think many are realizing as such (and profit-taking).

I also want to discuss the theory of Nintendo's mobile offerings being as a marketing tool as oppose to a greater source of revenue as many analysts believe.
 
W

watershed

Banned
vinnygambini said:
1st sentence: Iwata-san's recent comments on Nintendo's new mobile strategy may not have the impact investors/analysts seek and I think many are realizing as such (and profit-taking).

I also want to discuss the theory of Nintendo's mobile offerings being as a marketing tool as oppose to a greater source of revenue as many analysts believe.
Click to expand...
Nintendo definitely wants to make big money from this mobile partnership. This is not just about funneling mobile users to dedicated gaming hardware. And their stock will continue to settle until more details are revealed. This move is a big deal and Nintendo is aiming for big profits from their mobile games. It takes a very selective reading of what Iwata said to think otherwise.
 
L

Led_Zeppelin

Member
BeatResetsTheWorld said:
Man, you've got Nintendo's whole strategy figured out before they've even figured out what they want to call their new system
Click to expand...

I am mostly talking of building your mobile approach under the pretense of turning your mobile customers into core customers. So far there hasn't been a single case of success in the mobile market that the flow works that way. But hey lets not discuss about current market behavior and instead lest discuss how everything is rainbows and flowers for Nintendo after making the obvious move of going mobile!

The true is that we don't know anything, and the point of the OP was to discuss the market approach that Iwata seem to hint. A market approach that is untested and that almost all current core publishers that tackle on mobile have failed to capitalize in the way Iwata hinted his mobile strategy is going to work.
 
S

ShockingAlberto

Member
This is how I picture most investing discussion on the internet.

Tr5GuGL.jpg
 
B

Big One

Banned
Bit sure why people were expecting otherwise.

Nintendo is a console manufacture first and foremost. Even if they went 3rd party they'll put their main efforts towards consoles and have a mobile market based on getting people to buy their console offerings.
 
V

vinnygambini

Why are strippers at the U.N. bad when they're great at strip clubs???
watershed said:
Nintendo definitely wants to make big money from this mobile partnership. This is not just about funneling mobile users to dedicated gaming hardware. And their stock will continue to settle until more details are revealed. This move is a big deal and Nintendo is aiming for big profits from their mobile games. It takes a very selective reading of what Iwata said to think otherwise.
Click to expand...

It's definitely a big deal as both partners greatly benefit from each other's strengths: Nintendo's IP's and DeNA's know how; however, I don't think it's going to be the money-generator many analyst proclaim it's going to be - hence my thought that their mobile offerings is much more than that, but a marketing tool to reach above and beyond their capable of currently with their current offerings (console & handhelds).

foltzie1 said:
Still up a net 15%, just on an announcement, not bad and my Nintendo investment is finally in the black (yeah I expected the WIi U to do better than it did)
Click to expand...

Happy for ya :) What was your initial investment price?
 
F

foltzie1

Member
The stock movements over the last two days have been 100% speculation based, as such anything that causes a tiny move was going to cause a large move as day traders tried to get out.

The hockey stick will return and be more stable if and when Nintendo turns in some impressive (it prints money) quarters.

Still up a net 15%, just on an announcement, not bad and my Nintendo investment is finally in the black (yeah I expected the WIi U to do better than it did)
 
B

Boombloxer

Member
Sandfox said:
Why do investors think mobile automatically means insane revenue?
Click to expand...

Nintendo's expertise in portables and gameplay can potentially trounce everyone else by a country mile.

Now, if they half-ass it, it is their fault. Attempting to turn the majority of the mobile audience into dedicated hardware buyers? Dumb.

No one is giving up their iPhone to play Mario.

Nintendo definitely wants to make big money from this mobile partnership. This is not just about funneling mobile users to dedicated gaming hardware. And their stock will continue to settle until more details are revealed. This move is a big deal and Nintendo is aiming for big profits from their mobile games. It takes a very selective reading of what Iwata said to think otherwise.
Click to expand...

See, I can agree with this, because it makes sense. And then I think about their online strategy and it goes to shit.
I want to them to be really good at it, but time will tell.
 
P

Portalbox

Member
This happens everyday in the stock market. It's just a market correction to keep "expectations" in line. It was unrealistic to think the stock price would keep going up in such a short amount of time.
 
B

BeatResetsTheWorld

Banned
Led_Zeppelin said:
I am mostly talking of building your mobile approach under the pretense of turning your mobile customers into core customers. So far there hasn't been a single case of success in the mobile market that the flow works that way. But hey lets not discuss about current market behavior and instead lest discuss how everything is rainbows and flowers for Nintendo after making the obvious move of going mobile!

The true is that we don't know anything, and the point of the OP was to discuss the market approach that Iwata seem to hint. A market approach that is untested and that almost all current core publishers that tackle on mobile have failed to capitalize in the way Iwata hinted his mobile strategy is going to work.
Click to expand...

But that's the thing, we honestly don't know their ultimate approach. What if they actually don't see a significant number of people transitioning from mobile to dedicated and just want to get in that space because it's a huge market opportunity? What if instead of making companion apps, they simply make separate games, but you benefit from having multiple systems?

A good example are the pokemon games, well before the 3DS ones. You got an RPG experience on handhelds and a battle sim/colloseum on consoles. While the handhelds are thought of as the "main" game, both are completely standalone and don't require the other. However, if you owned both you were able to use teams that weren't rentals, play against friends without link cables/etc, and unlock a whole bunch of other features.

Or just looking at the DS games, through dream world (let's say this is it's own standalone game instead) you'd be able to unlock features in both through owning both. I think that type of strategy of incentivizing people to own multiple systems, as opposed to making one the primary and the other the secondary (ie. dedicated vs mobile) would do a better job, and EA, to my knowledge, hasn't been doing that
 
J

jblank83

Member
MJFJD said:
boy i hope we do not have daily stock watch threads and analysis.
Click to expand...

Stockwatch is the newest best most popular topic since NPD and Media Create.

All the market analysis.
All the numbers.
All the fanboys.
All the angst.
All the gifs.
 
C

Converse

Banned
Why is this a thread? I am not stock-market savvy, but I don't think you'd call a 12% fall from a large increase -- what, 29% at it's peak? -- a "tumble." Is the increase supposed to be indefinite?
 
V

vinnygambini

Why are strippers at the U.N. bad when they're great at strip clubs???
Mods can close this thread if they want.

I thought it would be a good discussion to, in addition to the profit taking from many shareholders, that Nintendo's mobile strategy does not seem to correlate to what many analysts think judging by Iwata-san's comment.

I may have wrongly presented my point. I apologize.
 
V

Valtor

Banned
Including the tumble, shares are still up by almost 40% compared to Monday. Before today's tumble, shares were up more than 60%. The tumble is most probably just an after shock of that huge raise, as well as currency and country based speculation and adjustments. Nothing to see here, move along.
 
Astral Dog

Astral Dog

Member
vinnygambini said:
1st sentence: Iwata-san's recent comments on Nintendo's new mobile strategy may not have the impact investors/analysts seek and I think many are realizing as such (and profit-taking).

I also want to discuss the theory of Nintendo's mobile offerings being as a marketing tool as oppose to a greater source of revenue as many analysts believe.
Click to expand...

Im not sure what this means, but Iwata and Reggie always said their mobile strategy was about attracting smartphone games to their other devices too, it was obvious they werent going to put significant resources on mobile, yet., its not a gold mine for any publisher, so we only can wait and see what impact these smartphone games have.
 
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