Nintendo shares dived Friday after the release of its Super Mario Run mobile phone game, with analysts citing concern over the high price tag despite the app topping download charts.
Coming on the heels of the Pokemon Go craze this summer, the game was released for iPhone only in about 150 countries on Thursday, a key test for Nintendo's fledgling foray into mobile gaming.
But investors pressed the sell button on Nintendo stock, which had soared nearly 12 percent between the September announcement of Super Mario Run's planned release and Thursday's close.
On Friday, the Tokyo-listed shares tumbled 4.24 percent to close at 26,405 yen ($223). Earlier in the session the stock fell more than five percent, wiping almost $2 billion off Nintendo's market value.
Shares in DeNA, Nintendo's co-developer on the game, plunged 6.78 percent to 2,857 yen.
The game -- featuring the iconic Italian plumber trying to rescue Princess Peach -- debuted at the top of download rankings in over 60 countries including Japan, Germany, Australia and Britain, according to market researcher SensorTower.
But some analysts warned that the nearly $10 price tag to buy the full version -- the initial stages are free -- could scare away some customers. Pokemon Go is free.
As well, Android users will not be able to buy the new game until a later date.
"Having a fixed price tag means profit will be limited because smartphone games make big money through free-to-play features," said Tomoaki Kawasaki, an analyst at Iwai Cosmo Securities.
Top spot
It is unclear how much the game will impact Nintendo's finances.
"Some investors who may have overestimated the expected revenue from downloads seem to be disappointed," Daiwa Securities analyst Takao Suzuki told AFP.
"Super Mario Run was in the top spot in download rankings and in sales in many European countries, while in the US it is number one in downloads but seventh by revenue.
"Sales in the US leave a bit to be desired."
The shares may continue to struggle next week, Suzuki added.
"But I don't think they will keep sliding further... It seems that short-term investors sold their shares. For longer-term investors there is no need to be concerned," he said.
Nintendo refused for years to move into smartphone gaming or license its characters for online play.
But as the Kyoto-based giant struggled to repair its battered balance sheet, it changed course and announced last year it was teaming up with DeNA to develop games for smartphones and tablets based on its host of popular characters.
In March, Nintendo released its first mobile game "Miitomo" -- a free-to-play and interactive game that allows users to create avatars.
Then the Pokemon Go game -- based on Nintendo characters -- exploded on to the market, sparking a phenomenon as it was downloaded more than half a billion times.
But it was only partly Nintendo's creation -- the game is owned by San Francisco-based Niantic -- and it has had little impact on the firm's bottom line.
AFP
Fri Dec 16 2016
Nintendo shares dived Friday after the release of its Super Mario Run mobile phone game, with analysts citing concern over the high price tag despite the app topping download charts. -Filepix/Reuters
Perkembangan semasa letusan Gunung Ruang
Ketua Biro Kompas TV Manado, Susan Margaret membawakan perkembangan terkini letusan Gunung Ruang di Indonesia.
PHAM 2024 melabuhkan tirai, kini tiba masanya bertindak!
Sidang Kemuncak Kesihatan Planet Dan Mesyuarat Ke-6 (PHAM 2024) melabuhkan tirainya selepas empat hari dengan tambahan pra sidang diadakan di Universiti Sunway, Petaling Jaya.
Sesi yang menghimpunkan peserta dari pelbagai latar belakang itu berjaya merapatkan jurang perbincangan antara pakar dari serata pelusuk dunia, sekali gus membawa lima harapan untuk penganjuran edisi seterusnya.
Sesi yang menghimpunkan peserta dari pelbagai latar belakang itu berjaya merapatkan jurang perbincangan antara pakar dari serata pelusuk dunia, sekali gus membawa lima harapan untuk penganjuran edisi seterusnya.
10 Suspek ditahan bawah Sosma, 28 hari tanpa perbicaraan
Sepuluh individu termasuk tiga lelaki warga asing yang ditahan kerana dipercayai mempunyai kaitan dengan lelaki Israel Shalom Avitan ditahan semula mengikut Akta Kesalahan Keselamatan (Langkah-langkah Khas) 2012 (SOSMA) .
Tarikh akhir pelayaran tiga kapal akan dinilai semula
Wartawan Astro AWANI, Syaff Shukri membawakan perkembangan terkini misi Break the siege of Gaza Freedom Flotilla ketika ketegangan di Asia Barat semakin memuncak susulan peperangan antara Iran-Israel.
Kapasiti empangan, sungai di Selangor masih pada tahap tinggi
Takungan air di semua tujuh empangan di Selangor dilapor berada pada kapasiti baik melebihi 73 peratus setakat semalam.
BN hanya dapat peruntukan RM100,000 masa jadi pembangkang - Ahmad Maslan
Datuk Seri Ahmad Maslan memaklumkan Ahli Parlmen dari Barisan Nasional (BN) hanya menerima peruntukan RM100,000 ringgit sewaktu jadi pembangkang.
Tiada syarat MP pembangkang sokong PM
Perdana Menteri, Datuk Seri Anwar Ibrahim menafikan tohmahan kononnya Ahli Parlimen pembangkang dikenakan syarat untuk menyokong Perdana Menteri bagi mendapatkan peruntukan.
Kanak-kanak 8 tahun cedera jadi mangsa buli anak jiran
Polis mengesahkan menerima laporan berhubung kejadian seorang kanak-kanak berusia lapan tahun cedera dipercayai menjadi mangsa buki anak-anak jiran di Hulu Langat, Kajang baru-baru ini.
Usaha tingkatkan kadar gaji penjawat awam diumum pada Hari Pekerja – PM Anwar
Penambahbaikan struktur gaji baharu penjawat awam hampir dimuktamadkan, kata Perdana Menteri Datuk Seri Anwar Ibrahim.
Dalam perkongsian terbaharu di laman media sosialnya, beliau berkata, perkara itu telah telah diperincikan dalam Mesyuarat Jawatankuasa Induk Kajian Sistem Saraan Perkhidmatan Awam (JIKSPA) Bilangan 3 Tahun 2024, yang beliau pengerusikan di Putrajaya pada Jumaat.
Dalam perkongsian terbaharu di laman media sosialnya, beliau berkata, perkara itu telah telah diperincikan dalam Mesyuarat Jawatankuasa Induk Kajian Sistem Saraan Perkhidmatan Awam (JIKSPA) Bilangan 3 Tahun 2024, yang beliau pengerusikan di Putrajaya pada Jumaat.
Tiada kerosakan kemudahan nuklear Iran - IAEA
Agensi Tenaga Atom Antarabangsa (IAEA) mengesahkan tapak nuklear Iran tidak mengalami kerosakan selepas letupan kedengaran di tengah-tengah dakwaan serangan Israel ke atas negara itu.
Ketua Pengarahnya, Rafael Grossi menyeru semua pihak bertenang dan mengulangi bahawa kemudahan nuklear tidak boleh menjadi sasaran dalam konflik ketenteraan.
Ketua Pengarahnya, Rafael Grossi menyeru semua pihak bertenang dan mengulangi bahawa kemudahan nuklear tidak boleh menjadi sasaran dalam konflik ketenteraan.