Investing in Nintendo
It is one of the most solid entertainment and technology companies in the market. However, is it convenient to invest in Nintendo?
Despite being a solid brand, in the stock market world, there is always a latent risk of a stock market downturn. So that you do not have any risks when investing, we will present the history of Nintendo and how its shares have evolved over time. This way, you will know how to invest in Nintendo stocks in the most effective way Do you like the idea? If so, let’s get to it.
What is Nintendo?
Nintendo is a multinational company founded by Fusajiro Yamauchi in 1989 in Japan. Since then it has been responsible for the development of video game titles and technological advancement in its innovative consoles.
During its first years of operation, Nintendo specialized in traditional regional playing cards called Hanafuda. It was not until 1970 that the company decided to focus its business on different types of products such as arcade games and toys.
In this way, Nintendo became one of the forerunners of the video game industry. Today, its brand is recognized worldwide thanks to titles such as: Mario Bros, Super Mario Bros, Pokémon Gold and Silver, Super Smash Bros, Legends of Zelda, Mario Kart, Wii Sport and many others.
In addition, he has been in charge of the development of portable and desktop video game consoles such as:
- Color TV-Game (1977-1980)
- Nintendo Entertainment System (1983-2003)
- Super Nintendo Entertainment System (1990-2003)
- Nintendo 64 (1996-2002)
- Nintendo GameCube (2001-2007)
- Nintendo Wii (2006-2013)
- Nintendo Wii U (2012-2017)
- Nintendo Switch (2017-Current)
- Game Boy (1989-2003)
- Game Boy Color (1998-2003)
- Game Boy Advance (2001-2010)
- Pokemon mini (2001-2002)
- Nintendo DS (2004-2011)
- Nintendo 3DS (2011-2020)
Now, in addition to the development of new consoles and video games, Nintendo bet on expanding its catalog. It was not until 2008 that the sale of consoles and video games represented 90% of Nintendo’s sales.
Realizing this, Nintendo has developed other types of spin-offs to the gameplay industry, with the intention of further leveraging its intellectual property. Among these products are some soundtracks created by composers such as: Mahito Yokota, Kenta Nagata, Hirokazu Tanaka, Koji Kondo, David Wise and Kazumi Totaka.
As one of the pioneers in the video game industry, it is worth mentioning that since its founding the company has issued and released approximately 141,637,000 titles with the Nintendo seal of quality.
In addition to that, by 2017 Nintendo already had a market capitalization of 121,495.47 million US dollars. But now is it convenient to invest in Nintendo? Below, we will mention you some advantages and disadvantages in acquiring Nintendo shares.
Buying Nintendo shares: Advantages
- Nintendo has strategic partners that strengthen the company. Among them is Ubisoft, which has been in charge of creating exclusive titles for Nintendo platforms. Not to mention that it has also signed alliances with Disney.
- Nintendo operates a very extensive distribution network. This network consists of both wholesalers and retailers, and it also has its own network of official stores.
- The Nintendo group has a profitable pricing policy. It sells its launch games at a price that would be considered high and then gradually lowers them to match its competition.
- The Nintendo group gives confidence and peace of mind to its investors. It projects long-term guarantees, a fact that its main competitors do not do. All this because Nintendo invests heavily in research, in order to significantly improve its products.
Buying Nintendo shares: Disadvantage
- The Nintendo group is currently suffering from a breakdown with one of its star products. It is the Nintendo Wii, which is undoubtedly one of the company’s best-selling consoles.
- Nintendo’s sales have been affected by the imitation of its consoles. These are cheap and poor quality imitations that, even if they do not resemble Nintendo’s standards, can affect its brand image.
- Industry analysts lament the Nintendo Group’s inability to respect its margins.
As mentioned above, betting on Nintendo’s actions is a guarantee of long-term success. All this because its corporate policy is focused on the research of technological advancement for all its current products and new releases in video game titles or consoles.
A proof of this was the growth of Nintendo stock Price, with the launch of its augmented reality game, ”Pokemon Go”. With this title, its shares skyrocketed up to 120% in a few days.
If Nintendo is one of the companies you want to have in your investment portfolio, the first thing you should do is to join secure brokers where you can make completely safe transactions without any problems. Among the best are:
These brokers will allow you to trade Nintendo shares safely, allowing you to speculate on the downside and earn a lot of money with them. Likewise, you will be able to increase your income when Nintendo’s share price is on the rise.
With these CFDs, you can leverage, buy, sell and know in real time what is the price or value of Nintendo shares. You can start trading, making a minimum deposit with the amount of the operation you are going to perform.
One of the main pieces of advice we can give you when you want to own a stake in Nintendo through a stock is to invest with a cool head. Usually, when a person with no experience in the stock market wants to invest in this company, it is because of the love and appreciation they have for the brand.
However, we remind you that like any other stock in the stock market, Nintendo share price can also suffer sudden changes and therefore make you lose your money. That is why, at the time of investing, you should seek the advice of an expert in the matter.
This way, you will know how much a Nintendo stock is worth on Nasdaq and at what time will be ideal to make your investment. Follow these small tips and we assure you that you will be able to obtain the highest return with this incredible investment.