The story appears on

Page A7

December 17, 2016

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business

Nintendo shares drop after game release

NINTENDO shares dived yesterday after the release of its Super Mario Run mobile phone game, with analysts citing concern over the high price tag despite the app topping download charts.

Coming on the heels of the Pokemon Go craze this summer, the game was released for iPhone only in about 150 countries on Thursday, a key test for Nintendo’s fledgling foray into mobile gaming.

But investors pressed the sell button on Nintendo stock, which had soared nearly 12 percent between the September announcement of Super Mario Run’s planned release and Thursday’s close.

On Friday, the Tokyo-listed shares tumbled 4.24 percent to close at 26,405 yen (US$223). Earlier in the session the stock fell more than 5 percent, wiping almost US$2 billion off Nintendo’s market value.

Shares in DeNA, Nintendo’s co-developer on the game, plunged 6.78 percent to 2,857 yen.

The game — featuring the iconic Italian plumber trying to rescue Princess Peach — debuted at the top of download rankings in over 60 countries including Japan, Germany, Australia and Britain, according to market researcher SensorTower.

But some analysts warned that the nearly US$10 price tag to buy the full version — the initial stages are free — could scare away some customers. Pokemon Go is free.

Android users will not be able to buy the new game until a later date.

“Having a fixed price tag means profit will be limited because smartphone games make big money through free-to-play features,” said Tomoaki Kawasaki, an analyst at Iwai Cosmo Securities.

It is unclear how much the game will impact Nintendo’s finances.

“Some investors who may have overestimated the expected revenue from downloads seem to be disappointed,” Daiwa Securities analyst Takao Suzuki said.

“Super Mario Run was in the top spot in download rankings and in sales in many European countries, while in the US it is number one in downloads but seventh by revenue.

“Sales in the US leave a bit to be desired.”


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend