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.
Nintendo stock is currently (11:20am on Monday in Tokyo) down a whopping 5%.
Possible reason: Japanese business daily Nikkei today reports Nintendo’s “quality of life” project might be dead.
Nikkei says potential hardware partner Panasonic withdraw from that project in March.
— Dr. Serkan Toto (Kantan Games Inc.) (@serkantoto) June 4, 2018
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!