[Cookingboy]

So everyone understands that the short term downloads/revenue would NOT justify the crazy increase in market cap of Nintendo so far.

However, what distressed investor is not the fact that Nintendo didn't adjust quarterly earnings, but the conservative management team refused to signal that they acknowledge the potential of their IP + mobile + new technology such as AR and change their future strategy to be beyond in-house consoles + first party games.

It almost seems to me that their management is embarrassed by the meteoric success of Pokemon Go, considering that they have traditionally been very reluctant of creating contents for smartphones. Now despite their pride, the biggest value jump in their company's history was not lead by any in-house product, but literally a 3rd party American startup writing an app on a platform they traditionally ignored.

I wouldn't be surprised if they are trying to downplay the impact of Pokemon Go just to save face.

Investors, on the other hand, just want to see them acknowledge this potential gold mine and commit a strategy in the future.

[mikekchar]

Traditional Japanese companies tend not to want short term investors. It is not unusual at all for them to downplay short term success because they do not like volatility in the stock. It might not be obvious since it is game system maker, but Nintendo is a 125 year old company with a very conservative way of doing business.

On the Nikkei, Nintendo has been hovering between 15,000 and 25,000 yen (or about $150-$250 a share). That's about typical for them in the last 20 years. Since you need 100 shares for a minimum order on the Nikkei, that's a minimum investment of $15-25k. In the middle of the 2000's Nintendo faced some criticism for letting its stock price reach 60,000 yen (minimum investment $60k). They were quite happy with this because they did not want casual investors buying their stock.

Basically nothing to see here.

[Joof]

Part of that may be Japanese culture; part of that may simply be Nintendo not caring. They do what they want and most of the time they do an excellent job. Their games are so good that too many mobile games might serve more to dilute their brands than to make them long-term profit.

[ben_jones]

Yup what a stupid, stupid, company. If only they had the wisdom of Silicon Valley Startups. Then they would be a real company and be able to create innovative and disruptive products that changed the world! \s

[Cookingboy]

You used such strong sarcastic tone as if that statement is so ridiculous, but the truth has been that the Japanese tech industry is in the process of being MURDURED by everyone, from the Americans to the Koreans and to the Chinese.

Sure Nintendo has been able to protect their moat relatively well (after losing their home console castle), but just like the overall Japanese economy, their traditional culture is really limiting how they can compete in today's cutting edge tech markets.

[majewsky]

I can't stop wondering if the typo in the all-caps word is intentional. :)