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Is Nintendo's mobile move more of a marketing tool? (Shares fall 12%)
- Thread starter vinnygambini
- Start date
Led_Zeppelin
Member
While I agree, the point is that EA build some really decent mobile games, like the Dead Space one that didn't turn into a marketing tool for the game, Capcom released Monster Hunter in Japan in 2011 and the series didn't saw an increase in sales in Japan where the PSP versions are still the best selling versions.
Nintendo's approach is untested which is why it could drive away investors, a more safe approach would leave DeNA build a mobile game suited to the needs of the mobile market with a NIntendo IP. DeNA has the experience to build them and to monetize them. It would work better if Nintendo went after the profits first and then after evangelization of the mobile crow into the core segment,
Again the mobile market has been out for a while and I doubt there are cases of core business games that did better thanks to exposure of a mobile app/game, but then again almost none of the games that were taken to mobile had the power punch of a Nintendo IPs, we should wait and see but to me there aren't enough market indications that point out that is possible to evangelize mobile gamers into core gamers.
Tracking daily stock price changes in the face of large strategic announcements means dick in the real world... It's a futile effort.
As with anything, the proof is in the pudding and fair value will come out when Nintendo (any stock) clearly articulates how (sustainable) value can and will be created.
My $.02, don't read into these movements too much.
As with anything, the proof is in the pudding and fair value will come out when Nintendo (any stock) clearly articulates how (sustainable) value can and will be created.
My $.02, don't read into these movements too much.
Mailenstein
Member
Just another day on the stock market. No surprise it tumbled after that spike. I'm sure it will rise further, just not like it did a few days ago.
BeatResetsTheWorld
Banned
Nintendo's approach seems to be to make games like usual with DeNA consulting them on how best to tailor them to the mobile market. What's wrong with that approach? I'm not super familiar with DeNA, but I'd wager they probably wouldn't make games as well as Nintendo would
Rising_Hei
Member
They can also advertise their own home console games with those mobile games, can't they? it'd be a mastermove.
ArkhamFantasy
Member
The Nintendo investors strike me as people that dont really know anything about gaming.
vpance
Member
It's natural for stocks to take breathers after big moves but it is kind of backing quite down a bit from the high. Let's give it another week to see if it was a fake out
Led_Zeppelin
Member
I am not saying they are wrong in their approach to make the game themselves, though I would argue to let DeNA develop them and build and handle how to monetize them because they are the ones with the know/how in the mobile market and that Nintendo let their IPs. I am saying that the endgame Nintendo seems to be persuading is no tested and that it would be safer to build games for mobile needs/wants from scratch (with the help of DeNA that understand the market) pursue after making every game profitable (microtransactions, merchandising, etc) and then build a plan to evangelize the mobile crow into your other devices. Is also untested but it has better chances (on paper of course) to be far more profitable and succesful.
I don't get what the problem is, what is he saying that's bad? Mobile market is really quick on turnover and it's easy for a game to become a flash in the pan if they don't support it with content. Does the quote about payment methods mean that they are gonna shy away from freemium? If so, what's the big deal with that?
Iwata specifically mentions that Nintendo wants and needs to be "among the handful of winners" in the mobile space. If after reading that you think that Nintendo is primarily regarding the mobile space as a marketing tool you are beyond help.
Iwata:
Just looking at the fact that several applications that earn great profits are highly visible in the smart device game business, people in general appear to see it as an easy money market. The fact is, however, it is a highly competitive market and only a handful of content providers have been able to show enduring results. If Nintendo cannot make it to that handful of winners, it does not make sense for us to be engaged in the software business on smart devices.
Iwata:
Just looking at the fact that several applications that earn great profits are highly visible in the smart device game business, people in general appear to see it as an easy money market. The fact is, however, it is a highly competitive market and only a handful of content providers have been able to show enduring results. If Nintendo cannot make it to that handful of winners, it does not make sense for us to be engaged in the software business on smart devices.
MisterHero
Super Member
Fans don't want to hear about Sony's junk status
That was 2014 though so things might've changed.
ArkhamFantasy
Member
They aren't going to put anything on mobile that is going to damage their ability to sell consoles and handhelds. They wont even port old gameboy games to the platform. I think they would like to make some money off of this deal, but i think another big reason for this move is to keep investors off his back until the next console comes out.
This quote means that by not winning they will almost certainly devalue their brand and that would mean it was a mistake to enter. If Nintendo isn't proving their worth then how could they possibly convert people to their ecosystem?
BeatResetsTheWorld
Banned
What? You don't make a partnership and buy stock in a company just to appease some investors for a few years...this will most likely be a significant effort not just Nintendo throwing their board a bone. And they won't just stop once their next console is released either
Wasn't the things quoted said yesterday?
How about we give it some time for the thing to stabilize...
Pretty much.
How about we give it some time for the thing to stabilize...
This is how I picture most investing discussion on the internet.
Pretty much.
Keyser Soze
Member
A quick glance at the last 3 months suggests tumble is the wrong word...
They are just readjusting after a big event, and are still significantly higher than the start of 2015. Has to be seen as good news.
But the 10 year graph show they have a long way to go to please all investors again...
They are just readjusting after a big event, and are still significantly higher than the start of 2015. Has to be seen as good news.
But the 10 year graph show they have a long way to go to please all investors again...
ArkhamFantasy
Member
I have absolutely no doubt that it was part of the decision.
spookyfish
Member
Happy for ya
I think 17.25 on NTDOY
It was a hype spike. People saw it was going up, so bought, then sold when they thought it peaked, bringing the price crashing down.
What GAF often fails to understand is that the people who do this are more interested in playing the market than having any real loyalty to Nintendo. It's attractive to make it want to fit your narrative, but just like with Ubisoft's share price falling after AC Unity's release, it has nothing to do with the actual product or announcement.
What GAF often fails to understand is that the people who do this are more interested in playing the market than having any real loyalty to Nintendo. It's attractive to make it want to fit your narrative, but just like with Ubisoft's share price falling after AC Unity's release, it has nothing to do with the actual product or announcement.
This is how I picture most investing discussion on the internet.
Sounds about right
Disaster Nebraska
Banned
Initial spike was likely due to all the gaming outlets reporting the news with the headline "Nintendo finally goes mobile", even though when you read the report it's clear that's not the direction they're taking it.
I still think there's plenty of room to grow with each future milestones, assuming they're all hit with positive news.
1) First actual game announcement and some info shown, assuming it's something that pleases people
2) First sales, assuming the sales numbers are great
3) Revenue figures, assuming the number is very positive
I can see stock jumping in any of those milestone points assuming positive news all around.
1) First actual game announcement and some info shown, assuming it's something that pleases people
2) First sales, assuming the sales numbers are great
3) Revenue figures, assuming the number is very positive
I can see stock jumping in any of those milestone points assuming positive news all around.
curlyfriski
Banned
I see we're well into the denial stage.
I doubt anyone expects that to happen.
Sony fans absolutely refuse to look at the numbers, and the fact is Microsoft is way too big a company for bad Xbox news to impact share prices.
The way I understood Iwata was that they are indeed going to use their mobile endeavors to generate significant profit, and they are also going to devise ways to incentivize those customers they connect with on mobile devices to get the dedicated hardware also. Based on remarks Iwata made last year, I think the key would be the use of the NNID. Like, to a particularly promising candidate (based on DeNA's analysis of usage data) they could say "Because you've been an excellent customer of our mobile offerings, we have these rebates/free games/whatever for you but only on the NX, so you might as well get the NX where your free premium games await you." Also, I think they could do the same to help transition the remaining 3DS and WIIU owners to the next platform. I think that's why they're going to launch the new membership system this Fall, to establish that connection with their remaining users before the transition to the new hardware (so they can at least hopefully count on their remaining hardcore fans to upgrade to the new platform, and I think they said they're going to get a game recommendation system set up to suggest new content to users). But Iwata was very clear that they want to be among the winners with multiple hit titles on mobile, so to me that leaves no doubt they're going to make games that are not simply marketing tools.
Could certainly have elements of that but I would also imagine its a case of we are not going to release a title for 2 dollars then have 90 in game locks requiring you to spend 200 bucks to unlock it all.
Denial for who? Nintendo or people invested in Nintendo or GAF? There's clearly a divide on the right or wrong opinion here so this is just confusing.
I also see a lot of companion apps to compliment their handheld/console games. Like putting a more fleshed out Pokémon-Amie that gives you the option to have the pokemon you catch in the next game appear in "your" app or have special pokemon join your Pokemon team in the handheld version. In fact, I think that is their main strategy. Have each of these elements be enjoyable in itself, but have bonuses if you own more Nintendo stuff, hence "advertising".
TheXfactor
Member
why would the stock market determine this anyway, why not wait till the actually show a mobile game
In defence of his point, if you wait that long there's not much money to be made. If Nintendo's going to make a pile of money on mobile, the profitable thing to do would be to buy the stock long before that's apparent.
I see mobile as a threefold strategy for Nintendo. In the short term it serves to bring in money. This is good for rather obvious reasons. In the long run it serves to strengthen their brands. Get more eyes on Mario, Pokemon, Zelda, etc. so that they're in people's minds more and are more likely to buy merchandise and go where they want to. If the games are good and monetized well, Nintendo will not have much of a problem with these. They certainly have an advantage in notability. A Pokemon game of any sort should be able to chart with ease, though it would have to be good/addictive to be one of the big money makers.
The third part is the hard part. In the middle term they want people to buy their hardware and get into their ecosystem. Even if they can make money on phones, Nintendo prefers people buying their hardware where they keep more of the profits. But how do they do that? Can they do that? I don't know the answer to that (I'd be rich if I did), but it's certainly worth a try. Worst that happens is that no one converts, and they only accomplish two of their goals. Converting mobile customers to 3DS/Wii U/NX should be their biggest goal if only because it's the most challenging and arguably most lucrative path.
The third part is the hard part. In the middle term they want people to buy their hardware and get into their ecosystem. Even if they can make money on phones, Nintendo prefers people buying their hardware where they keep more of the profits. But how do they do that? Can they do that? I don't know the answer to that (I'd be rich if I did), but it's certainly worth a try. Worst that happens is that no one converts, and they only accomplish two of their goals. Converting mobile customers to 3DS/Wii U/NX should be their biggest goal if only because it's the most challenging and arguably most lucrative path.
Gonzo The Great
Banned
This is how I picture most investing discussion on the internet.
Just replace the word "bed" with "stock".
shinra-bansho
Member
If you'd like, I can change the thread title towards what you actually wanted to discuss i.e. whether more recent comments indicate this is more of a promotional strategy. I don't think you've framed it well focusing on what is probably just profit-taking.
On whether it will largely be promotional strategy, I'd probably cite the large capital exchange/alliance as evidence that this is probably much more than just promotion. I'm hoping it's a realisation that the gaming market has shifted significantly and that they do need to start developing a substantial presence in this segment of the market as an end in itself.
Also, general N.B. It's a perfectly valid thread.
vinnygambini
Why are strippers at the U.N. bad when they're great at strip clubs???
D
Deleted member 1235
Unconfirmed Member
because mobs of people are fuck stupid. investors aren't immune.