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Nintendo's stock increases after the success of Miitomo


Last week, Nintendo released its first mobile game: Miitomo. The game was quick to reach the #1 spot on various app stores, and the success of the game has caused Nintendo's share holders to become very pleased. With the application already surpassing 1 million downloads, Nintendo's entry into the mobile market has surpassed the expectations of many. 

According to Bloomberg, Nintendo's stocks rose by 8.2%, which is Nintendo's biggest stock increase since February 15th. This now puts Nintendo's stocks at ¥16,515, and this will likely increase once the game is released into other regions.

Games: Miitomo

Comments

zippo
Tue Mar 22 16 08:02am
Rating: 2

I'm glad the whiny investors that have begged them for the last five years to do this are finally satisfied

And now they will bug them to go even further.. Put a mainline Zelda on Smartphones with microtransactions, and the investors might be happy! :P

I'm actually hoping for the opposite; I'm praying that the success of an app like Miitomo will make investors realize that they don't need Nintendo's console games on phones to turn a profit, and will leave those series alone.

It was one of those idiots, after all, that wanted to put the original SMB onto phones, then use a microtransaction to get Mario to jump higher. [which Luigi already does]

The last thing we should want is for investors to push harder for old console games on phones.
Let's hope Nintendo pushes whoever asks for such a thing again, down the nearest Piranha-Plant-Infested Warp Pipe.

leafy
Tue Mar 22 16 08:54am
Rating: 1

"Nintendo's stock increases"

Amiibo hunters turn their heads.

cgsasuke
Tue Mar 22 16 09:01am
Rating: 1

Great job Nin! Now keep the casual ppl on cell phones so that you can deliver uncensored games to the Wii U & NX.

nurio
Tue Mar 22 16 09:09am
Rating: 1 (Updated 2 times)

Nintendo's biggest stock increase of the year since February 15th
of the year
since February 15th
Which is it? Is it the biggest stock increase of the year, or the biggest stock increase since February 15th?

Honestly, the biggest stock increase since a month ago doesn't sound too impressive, especially considering this is something the investors really looked forward to

I apologize for the redundancy, and I've updated the article. I was just reporting what other websites listed. Regardless of whether or not it sounds like a big deal, various news outlets have made sure to state that it was Nintendo's largest increase since February 15th, so I need to make sure that that info stays in there.

Yeah, you're definitely right. All for providing as much objective information as possible.

It just doesn't sound as impressive when you think about it. It sounds great at first 'glance', but if they made a bigger jump in profit on February 15th, then this doesn't seem too big.

Not really that interested for this app, but I might give it a go. But what really interests me is just how much revenue they can generate from mobile, and if it's lucrative will they reinvest back into console software?

Well... they stated some times that the goal was not necessarily to make money, but to bring these players/users incentives to migrate to the main games on their dedicated hardware by hooking them, giving them a taste of the Nintendo games, then showing them there are advantages to the dedicated hardware (like giving them games for dedicated hardware as rewards for the points of MyNintendo... if you get a lot of them, but don't have the necessary hardware, you will be more tempted to maje the jump and buy it).

artten
Tue Mar 22 16 03:44pm
Rating: 1 (Updated 2 times)

Oh I totally get what you're saying, and I remember them saying it myself, but if I were to break that down, it sounds like a strategy specifically designed to bring in what I would tentatively call casuals.
Now not to say that is wrong, as a good percentage of PS4 owners are funny enough casuals! But they also have a very strong core audience as well. And one of the biggest draws for the core audience are games pacifically aimed at them, and what Nintendo has shown so far with this app, may not appeal to that type of gamer. And by extension there efforts to allure these customers would be wasted to a certain degree. Which would then require them to rely On the tried and tested method of drawing the core gamer audience, big AAA console titles. Best way I can see them achieving this is if they're able to use a relatively stable and to a certain extent disposable line of income, for the purposes of internal development and "financially helping third parties out", if you know what I'm saying.
As I believe the core of a consul business is in fact the core gamer, now Nintendo most likely will secure their own core audience, and will most definitely bring in the "casuals", but for them to be successful they need to targets these console agnostics, that they seem to have had issues gaining as an audience for the last several generations, you know the type, the ones who support the third parties. That's why I believe it would make sense for them to reinvest any financial gains from the mobile market back into their core consul business.
That's why I say I'm interested with what they going to do with the money, if they generate any from there mobile apps.

Oh, yeah, I agree too (and I'm pretty sure they said in one of these investors meetings that it was indeed their plans to do so). It's all a big plan so that every parts, every different market they try to gain will sustain and improve the others. It was also the plan with the (sadly delayed/limboed) Quality of Life project, that healthier people have more energy and have more positive outlook on life, so tend to play more games.

So yeah, it's all there to cultivate their main activities: games. :P

Tue Mar 22 16 12:07pm
(Updated 1 time)

As a shareholder, nothing will beat the 8 point jump of the stock last year at this time when Iwata announced this mobile strategy (or when it was $80 during the Wii era). I'm looking at the stock history, and it was higher last year. I'm actually rather disappointed with the slight increase.

A stock increase indicates promise, but isn't Miitomo just being downloaded a lot? That in and of itself doesn't mean Nintendo is making money right? Btw, I know the game has microtransactions, but does it have ads? Or is it ad-free? If it's the latter, that's pretty cool, but monetization does become harder I presume.

Miitomo is the foot in the door, so to speak. If people using it like it, and they get into MyNintendo, they will more readily buy/download another App/Game from Nintendo in the future. If they like the "free" game, and see there is another one from the same guys showing more promises, even if it cost a bit of money, it will still seem more interesting that if the first game they saw from them would be paid, or even if it just had ads. Some people really despise ads, and anyway, they always have some negative connotation.

cheesus 2
Tue Mar 22 16 05:32pm
(Updated 1 time)

I'm glad for Nintendo, but I think Miitomo is still very uninteresting.

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