Animal Crossing Delay Sees Nintendo Shares Drop $1 Billion In Value

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Animal Crossing Delay Sees Nintendo Shares Drop $1 Billion In Value

June 13, 2019

By: Robert Grosso

 
 

Nintendo's E3 2019 performance was filled with good reveals and nice surprises, from Banjo-Kazooie in Smash Bros. Ultimate to a brand new Legend of Zelda: Breath of the Wild sequel being announced. One other major highlight was some extensive footage of Animal Crossing: New Horizons, followed by the reveal that the game would be delayed until March of 2020.

Unfortunately, that delay announcement would panic many Nintendo investors, who would see a massive loss - $1 billion in value - of the stock's valuation on Wednesday, according to the Financial Times. As of the end of trading on Thursday in Tokyo, the stock had rebounded a bit from its lowest point but it is still significantly down and no better then it was at any more point Wednesday.

The loss of over $1 billion in valuation would be roughly a 3.53% loss for the companies overall value in a single day, with New Horizons being the primary cause, according to investors.

Other causes were also cited, notably the lack of announcements catering to cloud-based streaming technology, lack of news surrounding the long-rumored new Nintendo Switch model, and lack of collaboration between Nintendo and Microsoft and other minor points.

 
 


Quick Take

I am honestly not sure what these investors are thinking. Heck, even one of the analysts, David Gibson of Astris Advisory, questioned why investors were not excited by the very notion of a Breath of the Wild sequel when the first game was a massive success across the board, becoming the most sold Zelda title in the franchise. 

And honestly, just from the general public perception the Nintendo Showcase, as always, delivered the goods when it came to games and content. The big reveals aside, their secondary, indie, and third-party lineups are perhaps the strongest they have ever been, beating the showcase of Microsoft this year easily. With Pokemon Sword and Shield coming this fall, Animal Crossing in March, and first-party titles like Metroid Prime 4 and the Breath of the Wild sequel in the wings, Nintendo is in no danger of any catastrophic disasters at this point. Investors should probably calm down.

What do you think about all of this? Leave your comments below. 

Self Photo Holding Beer
Staff Writer

A game playing, college teaching scholar who happens to write some articles every so often. Enjoys penning long-form articles that few probably read. Love the art of gaming, preservation, collecting and RPGs. Have worked as a journalist, critic, educator and blogger for over ten years now, with articles published (as user editorials) on Game Revolution and Giant Bomb as well as a contributor for the websites Angry Bananas and Blistered Thumbs. Now making TechRaptor my home.

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