Topic: Nintendo's Value Improves Upon Opening of Chinese Market

[Steel Diver]

Nintendo is valued higher than Sony

http://www.nintendoworldreport.com/news/36329

Nintendo's market value has risen to surpass Sony with the opening of the Chinese market, following China's decision to lift the ban on consoles earlier this week.

Upon the suspension of the Chinese console ban, Nintendo's stock prices went up by 11 percent, and Nintendo is now valued at $18.4 billion. One of it's main competitors, Sony Corporation, (the parent company of Sony Computer Entertainment) has dropped behind, coming in at just $17.7 billion. This figure is based on all aspects of Sony Corporation, such as music and motion pictures, and not just the PlayStation brand.

There is speculation that 3DS sales and rumors of an upcoming change in Nintendo's business model have also contributed to the rise in stock. However, if poor Wii U performance continues, it is predicted that these numbers could take a hit at Nintendo's next earning's report.

[ThePerm]

They used to be valued quite a bit more.

I think the number 24 billion stuck out

http://www.nintendoworldreport.com/news/14102

[ThePerm]

i really dont get not being able to edit posts.

anyhow edit: correction the old article says 75 billion.

[PetariJ]

Where is this rumor about the change in business model? What's it about?

[Eiksirf]

Sell! Sell!

No, this is great news for Nintendo. Things aren't all rosy, so when they can get a new market and shore up investor confidence with little effort, that's huge for business.

PetariJ, the rumors come from a recent statement by Iwata. I don't have a link, but he was vague, saying Nintendo is looking at things like mobile and changing its business model. No specifics, no plans given. It could mean anything from dumping home consoles and making a smartphone to just changing the way they spend their ad budgets. Who knows. Nintendo probably doesn't know either, so when they can buy some time with things like the Chinese market opening up, it can keep them from making any rash decisions that'd cost them more in the long run.

[Eiksirf]

That didn't last long. Nintendo's stock reportedly plunged this weekend?

http://www.bloomberg.com/news/2014-01-19/nintendo-pressed-to-exit-hardware-after-wii-u-flop.html

Nintendo fell 6.2 percent to 13,745 yen, its biggest decline in Tokyo since Sept. 9. The fall wiped about $1.2 billion in the company’s market value. Nintendo on Jan. 17 projected an operating loss for the year ending in March and cut its forecast for the Wii U’s annual sales more than two-thirds.

[Ceric]

Though All Things being considered.  Being worth more than Sony is still interesting.