Nintendo stock plummets, maybe due to quality-of-life project failure

Nintendo stock has taken its biggest two-day drop in 18 months–falling 4 percent on Friday and another 6.3 percent on Monday. This is a pretty baffling development amid Switch’s high sales, so what could be to blame here? Well, for one thing, Japan’s highly respected Nikkei financial newspaper is claiming Nintendo’s quality-of-life project might be dead.

There’s a lot to unpack here. First of all, you might be asking: “What quality-of-life project?” Way back in early 2014, Nintendo announced it would develop non-game-related technology targeted at improving quality of life, but little was ever revealed about that plan afterward. If that project is dead–and as a result of a major partner like Panasonic withdrawing from it, no less–it could be the reason for Nintendo’s stock drop.

But Bloomberg offered some other possible reasons earlier in the day. For instance, maybe investors had reason to believe that Nintendo E3’s press conference just won’t be very exciting, which could hurt Switch’s momentum heading into the fall. Additionally, Nintendo’s online network strategy might not be very attractive to investors, since Nintendo’s playing catch-up against networks that Sony and Microsoft have cultivated for years.

Why do you think Nintendo’s stock has dropped? And do you think it even matters? Let us know!

[Source]

John Friscia
Proofs Editor for Enthusiast Gaming. I'm a writer who loves Super Nintendo and Japanese role-playing games to an impractical degree. I have recently returned from living in South Korea.

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