Nintendo Co Ltd. (NTDOY)Nintendo stock drops over 5%Bloomberg - March 3, 2008
Submitted by alexanderpas (952)
at 7:36AM PST on March 3, 2008
“Japanese stocks fell the most in a month on concern fallout from the U.S. mortgage market crisis is spreading to Japan’s consumer lenders and a U.S. recession will extend the dollar’s decline against the yen. Nintendo, which sells more than twice as many Wii game machines in the Americas as in Japan, lost 5.8 percent to 50,200 yen in Osaka trading.”
1
I'm also not really convinced that videogames are economically inelastic or recession proof. I think in the past many people believed in the theory that in hard times people would cut spending on their children last, so toy companies, teen retailers, and videogame companies would be relatively safe, at least for a while. However, we know that most gamers are now adults so that thinking shouldn't apply for videogames anymore. That said I still own shares of NTDOY.