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Tag: Nintendo Co Ltd

  • Nintendo carries out 10-for-1 stock split to lure new investors to the Japanese gaming giant

    Nintendo carries out 10-for-1 stock split to lure new investors to the Japanese gaming giant

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    Nintendo carried out a 10-for-1 stock split which reduces the price of an individual share. The 133 year old Japanese gaming giant hopes the move will make it more affordable for a wider pool of investors to buy the company’s shares.

    Zhang Peng | LightRocket | Getty Images

    Nintendo carried out its previously announced 10-for-1 stock split on Thursday aimed at reducing the price of one individual share to attract new investors to the more than century old Japanese gaming giant.

    Prices for Nintendo’s stock reflected the split on the Japanese Stock Exchange website. Nintendo shares closed at 6,043 Japanese yen ($41.76) on Thursday, after closing at 59,700 on Wednesday.

    Each share of common Nintendo stock has been split into 10 shares, hence the reduction in price per share.

    The move is designed to appeal to a wider pool of investors. In Japan, typically investors must buy a block of 100 shares in one company. At Nintendo’s old share price, that would cost a minimum of 5.97 million Japanese yen, or just over $41,200. With the split, 100 shares would cost 604,300 Japanese yen or just over $4,170 at Thursday’s closing price, potentially making it more affordable for individuals to invest in Nintendo.

    “That minimum investment of around 6 million yen is enough to put a student through an entire four-year study program at a Japanese university,” Serkan Toto, CEO of Tokyo-based games consultancy Kantan Games, told CNBC.

    “It was really about time for Nintendo as a consumer-facing company with such a strong brand recognition to reduce the share price.”

    “Now, Nintendo is more affordable especially for younger people, a type of investor that has been growing in Japan in recent years,” he added.

    A number of major tech firms, including Apple and Amazon, have announced stock splits over the past few years. While stock splits don’t fundamentally change the company in any way, they do make buying shares in the firm cheaper.

    The split comes at a testing time for Nintendo, a 133-year-old company, amid broader challenges in the video game industry. In the second quarter of the year, Nintendo’s operating profit fell 15% while sales of its flagship Switch games console also declined. The Japanese gaming giant is facing supply chain challenges which is hampering its ability to meet demand for the Switch.

    However, Nintendo games are still appealing to a wide range of consumers. The company said this month that sales of Splatoon 3 in Japan surpassed 3.45 million units — a domestic record for any Nintendo Switch software within the first three days of sales. Splatoon 3 was launched on Sept. 9.

    Nintendo is also gearing up to release popular titles in the coming months including a new game in the Pokemon franchise.

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  • Pokemon Go maker Niantic is laying off 230 employees | CNN Business

    Pokemon Go maker Niantic is laying off 230 employees | CNN Business

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    New York
    CNN
     — 

    Niantic, the creator of hit mobile game Pokemon Go, announced it is laying off 230 employees and reorganizing its business as it grapples with new macroeconomic uncertainty.

    In a letter to staff announcing the job cuts, Niantic CEO John Hanke said the company is taking other significant actions as well: shuttering its Los Angeles studio, sunsetting its NBA All-World game and halting production on Marvel: World of Heroes.

    The privately held company’s breakout hit, Pokemon Go, was among the first mobile games to embrace augmented reality when it launched in 2016.

    Hanke went on to state what has become a familiar refrain among tech CEOs announcing layoffs: The company grew too fast during the boom in demand for digital services seen in the early days of the pandemic, and now must adjust to a new environment.

    “In the wake of the revenue surge we saw during Covid, we grew our headcount and related expenses in order to pursue growth more aggressively, expanding existing game teams, our AR platform work, new game projects and roles that support our products and our employees,” Hanke wrote.

    Eventually, however, “our revenue returned to pre-Covid levels and new projects in games and platform have not delivered revenues commensurate with those investments,” he added.

    The reorganization, Hanke said, “will bring expenses and revenue back into line while preserving our core assets and long term upside.”

    In his memo to staff on Thursday, Hanke said that the company is now facing an augmented reality market “that is developing more slowly than anticipated, because of technology challenges and because larger players are slowing down their investments in light of the macro environment.”

    Still, Hanke emphasized that the company’s “top priority” going forward is to “keep Pokémon GO healthy and growing as a forever game.” He also said that remaining staffers should expect “a more direct and results-based culture.”

    Some 211,630 people in the tech industry have been laid off this year alone, according to data tracked by Layoffs.fyi, already surpassing the 164,709 figure recorded in full-year 2022.

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