Surprising Results for So Much Hype
You may be excited about yesterday’s announcement of the Playstation 4, but in business, sometimes the only reactions that matter are the ones investors make. Based on today’s Wall Street action, it does not appear those investors are fully satisfied with Sony.
Case in point: The trading day today ended with Sony stock falling 2.7 percent, plus a temporary tick down an additional tenth of a percent in extended trading after hours. The stock now sits at $14.08 a share, off yesterday’s close of $14.47.
Still, the PS4 announcement did some damage to Microsoft’s stock. MSFT fell more than one and a third percent to $27.49 a share, but has ticked up more than a quarter of a percentage point after hours to $27.57.
Ironically, the big winner in the PS4 announcement aftermath may be Nintendo. They were the only one of the big three console manufacturers to see their stock up on the trading day. NTDOY closed up almost two percent to $11.77 a share.
For reference, all major US indices were down today; with the NASDAQ taking it on the chin the most with a more than one percent decline.
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Stockholders on PS4 announcement: “OH MY GOD I NEARLY CARED!”
Hahahahaha
But that is normal. Stocks rise prior to an announcement and they usually fall after an announcement. Microsoft’s stock probably dropped because they are the only company right now who has not revealed a next-gen strategy yet (although it could be due to other reasons, because Microsoft’s is dealing with many other product launches, receptions, etc right now). Nintendo’s stock most likely went up because of a Nintendo Direct in Japan today, and also because investors probably see that Nintendo has some time in the market before the other next-gen systems launch to release more software on Wii U, mature some of its infrastructure, and maybe adjust pricing down the road.
Investors prolly wanted to actually SEE the console, and know its price, too.
This is actually pretty funny.
Honestly I just can’t get excited for consoles anymore. Maybe I’m just getting old and bitter but paying up huge amounts of money for a box under my telly which can’t play a lot of my old stuff seems regressive. Or maybe progressive depending on your outlook.
Maybe I’ve switched to PC gaming without even noticing. Thanks Steam.
Not surprising given that they didn’t even show a physical console playing games. In other words, they need proof of concept.
@ProjectZuel – Nintendo has always had backwards compatibility, and with Wii U, you’ll soon enough be able to play NES, SNES, GBA, 64, and GC games.
It’s really only Microny that doesn’t let you relive all your past games…
@Ricardo
By “always” do you mean the original run Wii being able to play GC games? Because that’s literally the only non-handheld Nintendo console that’s ever had any form of backwards compatibility, and the newer models don’t even have THAT anymore.
Probably cuz if you don’t even know what the hell the console looks like and what else it has to offer, why even think about investing??
Ricardo, you can only play gc games on wiis backwords compatablitity. Virtual console allows you to download ports but back words compatable means you can literally put the old games in the new console to play. Wii only did this for gc.
Wow I didn’t even know they took the gc features off for the new models. Sounds like the ps3 and Xbox have more back words comparability than the wii. Ouch.