Not many of you know I am not able to invest any kind of money on Nintendo Co., Ltd. because of my possible access to revenue data.
Nintendo is a solid company, but that does not mean that if their quarter result reports losses they can still smile like nothing happened.
Every quarter result, every meeting with investor, every announcement, since you are on the market, counts. Scheduling every detail is the key to contain losses and to refine profits. During the last days of October we have seen Nintendo Switch presentation, the release of Q2 earnings and the meeting with investors, three events that Nintendo knew in advance so that it could contain and drive market's reaction.
As soon as NCL realized Q2 was not going to be a good quarter in terms of sales, since releases were dry, they sold the Seattle Mariners, but that was not enough. Despite what a bunch of analyst said regarding the possible income of Q2, reality proved otherwise.
What happened then? Nintendo diluted its announcements so that the stock market was not shocked with incredible downs since Nintendo Switch was not what investors wanted in terms of games showed and complete mobile orientation for Nintendo and Q2 was not a good quarter for earnings.
NCL is investing money for Nintendo Switch and its development and Wii U and 3DS are not there to contain the losses. From a pure market and strategy perspective Nintendo has done everything right and the market reacted as planned. Now Nintendo is back at the quotation it had in July 2016.