Seems the money-market-fueled stock dip Nintendo suffered last week isn't over yet. Bloomberg is reporting that the company's stock tumbled down 5.9 percent today to its lowest point since early July '07.
The reason for the precipitous fall isn't so much Nintendo's recent performance. According to Bloomberg, the stock sell-off for Nintendo and other export-based Japanese companies seems to be based on the recently reported rapid contraction of the U.S. service industry, which has also caused problems for the U.S. stock market. Traders are reading the contraction as a strong sign of a long-predicted U.S. recession, which means less money to go around for non-essentials like video games.
Will less discretionary spending mean tougher times ahead for the games industry, or is huge growth last year indicative of a somewhat recession-proof sector?
yes i know the first part of the article has already been submitted, im just adding to it with the bloomberg analysis, thought it might be relevant, so dont shoot me :).
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The reason for the precipitous fall isn't so much Nintendo's recent performance. According to Bloomberg, the stock sell-off for Nintendo and other export-based Japanese companies seems to be based on the recently reported rapid contraction of the U.S. service industry, which has also caused problems for the U.S. stock market. Traders are reading the contraction as a strong sign of a long-predicted U.S. recession, which means less money to go around for non-essentials like video games.
Will less discretionary spending mean tougher times ahead for the games industry, or is huge growth last year indicative of a somewhat recession-proof sector?
yes i know the first part of the article has already been submitted, im just adding to it with the bloomberg analysis, thought it might be relevant, so dont shoot me :).