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Nintendo loses $2.4bn in market value after ‘incorrect’ Switch Lite sales report

CyberPanda

CyberPanda

Banned
Nintendo’s market value fell by $2.4 billion during early trading in Tokyo on Wednesday after investors reacted negatively to an early Switch Lite sales estimate from research firm Media Create.

The stock dropped as much as 4.6% in early trading after Media Create initially reported Switch Lite sales of 114,192 units for the system’s first three days on the market (Friday-Sunday).

Nintendo’s share price closed the day down 4.32% at ¥40,520 ($377.65).

According to Niko Partners analyst Daniel Ahmad, Media Create reported 114,000 Switch Lite sales as a preliminary figure, but later gave 160,000 as its final sales estimate.

Separately, Japanese publication Famitsu estimated Switch Lite sales of 178,000 units for the three-day reporting period.

Despite the final estimates being significantly higher than Media Create’s initial report, the numbers still fell short of Citibank’s prior estimate of 300,000 Switch Lite sales, Bloomberg reports.

It describes the reaction from Nintendo shareholders to the initial Media Create sales estimate as a knee-jerk one and suggests too much shouldn’t be read into the stock’s decline.

Nintendo’s stock has been described as perennially volatile – it fell 3.5% in June as investors reacted negatively to the company’s E3 announcements, including a delay to Animal Crossing: New Horizons, wiping $1 billion off Nintendo’s market value, which remains at about $50 billion on Wednesday.

Prior to Switch Lite’s release on September 20, shares in Nintendo hit a near 16-month high as anticipation built ahead of the console’s launch.

In VGC’s Nintendo Switch Lite review, we called the system “a secondary console worth owning”.
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www.videogameschronicle.com

Nintendo loses $2.4bn in market value after ‘incorrect’ Switch Lite sales report | VGC

Investors spooked by initial hardware sales estimate from research firm…
www.videogameschronicle.com www.videogameschronicle.com
 
MiyazakiHatesKojima

MiyazakiHatesKojima

Banned
giphy.gif
 
-Arcadia-

-Arcadia-

Banned
The stock market is absolutely insane. The slightest illogical whim can change everything.

That said, I do think the Lite is a little less successful than everyone expected. It’s obviously doing great, but I don’t think a dedicated handheld, at least at this point in time, was the game-ending move everyone expected.

The holiday season will be interesting to watch, as things could change drastically.
 
jts

jts

...hate me...
It’s a week old console ffs. Anything that can be said about it can be completely wrong, for better or for for worse. We’ll get a much better picture after Pokémon, after black friday, after holiday season.
 
TLZ

TLZ

Banned
I don't get it. Isn't 114k good for 3 days? I know it's 160-170k, but even 114k sounds good. Why were they expecting 300k? It isn't the holidays yet.
 
TLZ

TLZ

Banned
llien said:
Why was NVidia expecting 2xxx series to sell way better than it did?
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I don't know anything about Nvidia. But like I said, it's not even holidays yet. And compared to Nvidia, the lite isn't the next big thing, like a nextgen system or an upgrade.

But anyway, I think those numbers are good for September, and those are only lite numbers. Holidays and Pokemon should be interesting.
 
Woo-Fu

Woo-Fu

Banned
I don't think it really was the error, I think it was not hitting Citbank's earlier estimate of 300k, which they didn't come close to error or no error.
 
llien

llien

Member
TLZ said:
I don't know anything about Nvidia. But like I said, it's not even holidays yet. And compared to Nvidia, the lite isn't the next big thing, like a nextgen system or an upgrade.

But anyway, I think those numbers are good for September, and those are only lite numbers. Holidays and Pokemon should be interesting.
Click to expand...

But the mechanics is the same.
Nintendo expected to sell X, their supply chain was changed to accomplish that, etc etc.
Reality appeared to be not what company has expected, which is a bad sign, "investors" react accordingly.
I think it's pretty fair.
 
Solarstrike

Solarstrike

Gold Member
Nintendo should have released the Switch Pro/XL/2.0 instead, with enough time to sell them before games like Witcher 3 release. Sometimes i wonder if the decision making at Nintendo is a random coin toss but then again, they've been around for a long time so maybe the decision making is done over a game of cards.
 
F

Frenzy-kun

Neo Member
According to my own question in the Famitsu sales' thread, Switch lite is one of the best "lite" first week sales in japan ever.
This makes no sense. It's probably those gambling stuff of rich people.
 
Pejo

Pejo

Member
OH BABY, time for the "Nintendo is Doomed" posters to come out. We haven't truly had a new console generation until they have arrived.

On topic - I think as others have said, they'll do ok at Christmas. I personally don't like that they took the whole point and gimmick of the "Switch" and got rid of it. Can't switch from dock to handheld, can't switch out controllers, etc. They somehow had success with the 2DS though, which I felt was a similar move.

I don't usually get heavily invested in sales-age threads, but isn't there almost always a correlation between new hardware and a dip in stock prices? I'm assuming it's not usually 2.4B though, lol.
 
Ten_Fold

Ten_Fold

Member
Let’s see once Pokémon comes out. Way to early to tell. Sure nobody really asked for a switch lite, but at $200 a pop it sure to sell this holiday.
 
DonF

DonF

Member
Frenzy-kun said:
According to my own question in the Famitsu sales' thread, Switch lite is one of the best "lite" first week sales in japan ever.
This makes no sense. It's probably those gambling stuff of rich people.
Click to expand...
Japan is a relatively small market. The Market value of nintendo is calculated on a global scale.
 
D

Deleted member 738976

Unconfirmed Member
Pejo said:
OH BABY, time for the "Nintendo is Doomed" posters to come out.
Click to expand...
They always do.

But anyways I've seen a pile of them just about gone at my local Best Buy. However I'm waiting a bit before I think about getting one myself.
 
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ethomaz

ethomaz

Banned
Well the real number is not that high to avoid the drop in shares.
Investors expected close twice what it sold.
 
#Phonepunk#

#Phonepunk#

Banned
console has been out for a week? or less?

obviously the real test will be what happens over the holidays. xmas is less than 3 months away. maybe people will want to buy them for christmas presents. DO U THINK?
 
Azelover

Azelover

Titanic was called the Ship of Dreams, and it was. It really was.
Solarstrike said:
Nintendo should have released the Switch Pro/XL/2.0 instead, with enough time to sell them before games like Witcher 3 release. Sometimes i wonder if the decision making at Nintendo is a random coin toss but then again, they've been around for a long time so maybe the decision making is done over a game of cards.
Click to expand...
I don't agree with that. I think there is no need for a Switch Pro at the moment. The standard Switch is covering the base for right now. A proper handheld version was definitely needed though. New gen Pokemon is coming..

I believe the Lite will be very successful when it's all said and done.
 
PharaoTutAnchAmun

PharaoTutAnchAmun

Member
User has been removed from thread. Console warring/derailing.
CaptainFalcon64 said:
said the increasingly nervous Sony shill.
Click to expand...
Why would i be nervous??
i have no reason to, the PS4 is leading the pack with a big margine, i have games to play and i have coming games like Death Stranding, the Last of Us2, FFVIIR, the GoT, ( all exclusive PS4 games) and are looking forward to more games in 2020 and the PS5 on the horizon. No need to be nervous ore worried, Nintendo fans should be nervous. What will be the next Nintendo console and will Nintendo be hanging on on to more than 20 years old franchises over and over again?? Yes you should be worried.😉
 
jts

jts

...hate me...
PharaoTutAnchAmun said:
Why would i be nervous??
i have no reason to, the PS4 is leading the pack with a big margine, i have games to play and i have coming games like Death Stranding, the Last of Us2, FFVIIR, the GoT, ( all exclusive PS4 games) and are looking forward to more games in 2020 and the PS5 on the horizon. No need to be nervous ore worried, Nintendo fans should be nervous. What will be the next Nintendo console and will Nintendo be hanging on on to more than 20 years old franchises over and over again?? Yes you should be worried.😉
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Won't the Switch be leading the pack by a large margin over the PS5/XB2 when they release?

FFVIIR
Click to expand...

Nintendo be hanging on on to more than 20 years old franchises
Click to expand...
 
PharaoTutAnchAmun

PharaoTutAnchAmun

Member
jts said:
Won't the Switch be leading the pack by a large margin over the PS5/XB2 when they release?
Click to expand...
Yeah moving the goalpost. And when the Ps5 comes out nobody will buy a PS4 anymore, and Sony will stop making the PS4 when the PS5 comes out, right??
When the PS5 comes out there will be aprox 115 mil PS4's out in the wild and will stil sell even if the PS5 is out.
I swear you guys, think before you write.

FFVII R is not a first party game from Sony, it is infact third party game. It was SE decision to make it for the PS4.
And to make your answer voit, how many games Sony made from the same franchise the last 20 years? How many Mariogames, Pickmin games and spin offs has Nintendo made the last 20 years?? I rest my chase😉
 
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jts

jts

...hate me...
PharaoTutAnchAmun said:
Yeah moving the goalpost. And when the Ps5 comes out nobody will buy a PS4 anymore, and Sony will stop making the PS4 when the PS5 comes out, right??
When the PS5 comes out there will be aprox 115 mil PS4's out in the wild and will stil sell even if the PS5 is out.
I swear you guys, think before you write.
Click to expand...
Switch is selling at a comparable speed with PS4 time aligned so you're the one using the 40 more months of sales PS4 has on the market to claim its market leadership, only to change the tune when it's clear and inevitable that the Switch will be the market leader amongst active/flagship consoles on the market, after the PS4 is gone from that role.
 
Boss Mog

Boss Mog

Member
Should've been $150 tops, Nintendo overprices their consoles so much, pair that with games that almost never go on sale or get price cuts and it's easy to see why people like me don't own one and have no plans to. On top of that,the lack of quality online features and a trophy/achievement system are simply baffling.
 
Brazen

Brazen

Member
They really do need a price drop on the Switch this year. I mean really it's time to get some marketshare going yeah?
 
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