The Japanese stock market took a big dive this week resulting from the US service industries shrinking at the fastest rate in six years. The stalling of this business segment in the US caused grave concerns and set off shockwaves in Japan — the US is Japan’s largest export market.
Among the casualties is Nintendo, which reported sales of the Wii at a seven month low. Rohm Co., who makes the components for Nintendo’s Wii game controller reported a drop of 6.4% of its stock while Nintendo plummeted 5.9% in share value.
Overall 705 companies listed on the main board of the Tokyo Stock exchange have reported that they are lowering their full-year forecasts.
The general downward trend of business in Japan may affect other game related businesses as well. As far as Nintendo is concerned, their furious rise to success with the Wii may have finally started to slow down.
While the economics of the global economy has a great deal to do with Nintendo’s Wii faltering, one has to also wonder if the dip in sales is due to the market being saturated with the game machines in addition to a vacuum of high quality games for the Wii as well.
Detractors of the Wii have often remarked that it is nothing more than a fad. If the lack of good games from 3rd party developers continues, the prophets of doom may very well have the last laugh.
[via Bloomberg]
