Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
October 21, 2014
arrowPress Releases
October 21, 2014
PR Newswire
View All





If you enjoy reading this site, you might also want to check out these UBM Tech sites:


Nintendo stock surging after China lifts ban on consoles
Nintendo stock surging after China lifts ban on consoles
January 8, 2014 | By Alex Wawro

January 8, 2014 | By Alex Wawro
Comments
    4 comments
More: Console/PC, Business/Marketing



Newsbrief: Shares of Nintendo stock became significantly more valuable in the wake of yesterday's announcement that game consoles can now be officially sold in China.

The BBC reports that Nintendo's stock price rose nearly 11% yesterday, closing out at 15,580 yen on the Tokyo Stock Exchange. That's the highest it's been since July 2011, when Nintendo drastically lowered the price of the 3DS and gave away free Virtual Console games as part of the "Nintendo Ambassador" promotion.

It's worth pointing out that while China's decision to lift the 13-year ban may allow consoles to be officially sold in the country, in practical terms little has changed -- most game consoles and handhelds have long been unofficially available on the Chinese gray market to anyone who knows where to look.

So are many console and handheld games, though they're often pirated versions of foreign games which lack the monetization hooks that have allowed PC and mobile games to move in and dominate the Chinese market. While Chinese game industry revenues grew to a reported $13 billion in 2013, only $15 million of that came from console games.

Nintendo may be able to shake off the restrictions of the iQue brand and start operating more freely in China, but console manufacturers -- and the Western publishers who support them -- likely face an uphill battle against entrenched subscription-based and free-to-play games that have been localized to appeal to Chinese players.

UPDATE: If you weren't already suspicious about the sudden uptick in mainstream attention to the Chinese government's nebulous agreement to allow game consoles to be manufactured in Shanghai's Free Trade Zone and sold across the country, Kotaku's regional correspondent published a cautionary note spelling out a few good reasons to rein in expectations.

We've reported on them before, but it's worth reiterating that even if Microsoft, Sony or Nintendo start manufacturing hardware in the FTZ, everything must be inspected and approved by Chinese authorities before it may be officially sold in China. That leaves plenty of room for regulators to censor or ban games and consoles from the country.


Related Jobs

Treyarch / Activision
Treyarch / Activision — Santa Monica, California, United States
[10.21.14]

Senior UI Artist (temporary) Treyarch
Treyarch / Activision
Treyarch / Activision — Santa Monica, California, United States
[10.21.14]

Lead UI Artist
Vicarious Visions / Activision
Vicarious Visions / Activision — Albany, New York, United States
[10.21.14]

Art Director - Vicarious Visions
Infinity Ward / Activision
Infinity Ward / Activision — Woodland Hills, California, United States
[10.21.14]

Senior AI Engineer - Infinity Ward










Comments


Michael Pianta
profile image
Do investors think Nintendo is better positioned to take advantage of this than other console manufacturers? Or is everyone's stock rising?

Merc Hoffner
profile image
Videogames makes a much larger portion of Nintendo's total operations than the other two. Therefore their share value is more greatly affected by positive videogame news.

And I think they might think they're better positioned, between lower cost machines, and more family friendly (and censor friendly) titles. Plus the iQue line does mean Nintendo has prevailing experience and partnerships in the sector in the region.

Jeanne Burch
profile image
Sony's stock also closed up 5% (apparently not a "surge," though). Hard to say how much of that is the (official) opening of China and how much is the positive press it has been getting the last few days.

Bob Johnson
profile image
Nintendo is a videogame only company so the effect on the bottom line of a potential new market for consoles is much more pronounced than with Sony or MS. Also I like the Asian connection. Nintendo's platform is arguably the most Asian of the 3 platforms. I think Nintendo's gaming tastes will transfer better to China than to western markets. I could be wrong. And of course the potential sheer size of the Chinese market and potential lower costs.

At the same time, a new Chinese entrant to the console market could creep up. But if you believe Nintendo has a product that is unique and of high quality it isn't likely to matter much.

Still its all a calculated possibility. And the game really doesn't change. It still about delivering great new gaming experiences to consumers. And being able to keep that up.


....................
Pachter 4/13: Nintendo is a horrible investment

Me 4/13 on Gamasutra: I'm loaded up on Nintendo stock now.


none
 
Comment: