Nintendo’s Stock Falls, Investors Skeptical of Wii U

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Nintendo’s stock fell on Wednesday in Tokyo’s Nikkei index as investors reacted negatively to the company’s upcoming video game console, the Wii U. While press reaction seemed positive, questions of whether the system could compete sent the stock down more than 5 percent for the day. The rest of the market was flat.

Shuji Hosoi, an analyst at Daiwa Securities, was concerned about Nintendo’s ability to compete with smartphones and tablet PCs. The Wii U makes use of a controller with a 6.2 inch touch-screen that can be used in place of a television. The price of the system and controller is unclear, but it seems reasonable to assume that a controller with a large screen and touch interface could be fairly expensive.

“People are puzzled whether this will really sell,” Hosoi told the AP. “But it would be extremely difficult because the competition is so intense,” he said, referring to products such as the iPad from Apple Inc. and other rivals. “People have already changed.”

Personally, I am skeptical with the argument that Wii U will compete with an iPad anymore than a PS3 or Xbox 360 would. They seem like different markets for different consumers. If the iPad will affect any gaming device’s sales, it would more likely be the Nintendo 3DS and Sony’s PlayStation Vita.

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