Nintendo shares continue to fall on Wii U

Nintendo shares tumbled for the second consecutive day Thursday after its second-generation Wii videogame console unveiled earlier this week disappointed the market, say analysts.

Despite the buzz surrounding the Japanese entertainment giant's Wii U at the videogame industry's annual trade show in Los Angeles, the console and its touch screen controller has left investors cold.

Nintendo shares dived more than 5 percent on Wednesday after the company unveiled the console at the Electronic Entertainment Expo, or E3.

The stock extended losses Thursday, closing 4.5 percent lower at 16,160 yen on the Osaka Securities Exchange.

The company's shares are now at their lowest since March 2006 before the launch of the original Wii console amid worries over its strategy at a time when online games and smartphones are taking market share.

Nintendo has not said how much it plans to charge for the Wii U when the new consoles hit the market next year to do battle with Microsoft's Xbox 360 and Sony's PlayStation 3 (PS3).

"I don't really see Nintendo's strategy yet," Hiroyuki Fukunaga, a Tokyo-based market analyst and chief executive of Investrust Inc, told Dow Jones Newswires.

"There are concerns that (the Wii U) may turn out to be expensive with the touch-screen controller," he added.

A key feature to the Wii U controller is a 6.2-inch (16-centimetre) screen that displays maps or other information to complement game play, acts as a touchscreen game board and serves as a second monitor.

A forward-facing camera allows for online video chat with friends while playing with or against them online using a television connected to a Wii U, which will boast high definition graphics.

Nintendo is credited with opening the world of videogames to "casual" family players and with the introduction of motion-sensing controllers on the first Wii console launched in late 2006.

But analysts question whether the Wii U or the handheld 3DS can once gain capture that unique fan base now that such non-traditional gamers can use their smartphones to play inexpensively online.

Microsoft and Sony last year challenged Nintendo by adding motion or gesture-based controls to Xbox 360 and PS3 consoles, which boast more power than the Wii for richer imagery and more complex action.

- Dow Jones Newswires contributed to this story -

burs-dwa/dan

Life and Style
ebookNow available in paperback
ebooks
ebookPart of The Independent’s new eBook series The Great Composers
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Gadgets & Tech

    Recruitment Genius: Software Developer - C# / ASP.NET / SQL

    £17000 - £30000 per annum: Recruitment Genius: Developer required to join a bu...

    Recruitment Genius: Software Consultant / 1st Line Support

    £15000 - £25000 per annum: Recruitment Genius: As your knowledge grows you wil...

    Ashdown Group: Systems Engineer - Linux - Central London

    £40000 - £48000 per annum + Benefits: Ashdown Group: Systems Engineer - Linux ...

    Recruitment Genius: Technical Support and Sales Engineer - UC / M2M / IoT

    £20000 - £30000 per annum: Recruitment Genius: This leading provider of Cloud ...

    Day In a Page

    'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

    Bread from heaven

    Dutch survivors thank RAF for World War II drop that saved millions
    Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

    How 'the Axe' helped Labour

    UK will be 'run for the wealthy and powerful' if Tories retain power
    Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

    The price to be paid for challenging the rule of extremists

    A revolution now 'consuming its own children'
    Welcome to the world of Megagames

    Welcome to the world of Megagames

    300 players take part in Watch the Skies! board game in London
    'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

    Charlotte Gainsbourg on 'Nymphomaniac'

    Starring in one of the most explicit films ever
    Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

    Robert Fisk in Abu Dhabi

    The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
    Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

    Vince Cable exclusive interview

    Charging fees for employment tribunals was 'a very bad move'
    Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

    Iwan Rheon is returning to his Welsh roots

    Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
    Russell Brand's interview with Ed Miliband has got everyone talking about The Trews

    Everyone is talking about The Trews

    Russell Brand's 'true news' videos attract millions of viewers. But today's 'Milibrand' interview introduced his resolutely amateurish style to a whole new crowd
    Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

    It's time for my close-up

    Meet the man who films great whites for a living
    Increasing numbers of homeless people in America keep their mobile phones on the streets

    Homeless people keep mobile phones

    A homeless person with a smartphone is a common sight in the US. And that's creating a network where the 'hobo' community can share information - and fight stigma - like never before
    'Queer saint' Peter Watson left his mark on British culture by bankrolling artworld giants

    'Queer saint' who bankrolled artworld giants

    British culture owes a huge debt to Peter Watson, says Michael Prodger
    Pushkin Prizes: Unusual exchange programme aims to bring countries together through culture

    Pushkin Prizes brings countries together

    Ten Scottish schoolchildren and their Russian peers attended a creative writing workshop in the Highlands this week
    14 best kids' hoodies

    14 best kids' hoodies

    Don't get caught out by that wind on the beach. Zip them up in a lightweight top to see them through summer to autumn
    Robert Fisk in Abu Dhabi: The acceptable face of the Emirates

    The acceptable face of the Emirates

    Has Abu Dhabi found a way to blend petrodollars with principles, asks Robert Fisk