The Tokyo Stock Exchange has also suffered from the recent downturn, with all of the country’s gaming companies posting losses.

On August 5th, the market fell 4451.28 points, the biggest drop since the 1987 crash. Nintendo, SEGA, Capcom and Square Enix all closed in the red, but not as much as Cave, which fell 23%. Capcom wasn’t far behind (-16%) and Square Enix was relatively unscathed (-5%). Nintendo posted three consecutive days of negative results, dropping to a new low in this year’s data, although the big N already got a slap on the wrist after releasing its quarterly earnings report (we also reported how much Nintendo’s sales had plummeted compared to the April-June quarter last year).

It’s Monday 1:30pm in Tokyo now, investors in the stock market continue to panic and are causing a bloodbath:

Nintendo -15%
Sega -13%
Capcom -16%
Nexon -13%
Cave -23%
Konami -8%
Sony -6%
Marvelous -10%
Cyberagent -10%
Koei Tecmo -6%
Square Enix -5%

1.5h of trading to go. 🤯🤯🤯

— Dr. Serkan Toto 🔜 Gamescom (@serkantoto) August 5, 2024

Capcom, despite saying that they were optimistic until the end of March (the end of the current fiscal year), have reached the maximum drop in one day, as they have reached the limit of how much their shares can fall in one trading day. Of course, the Tokyo Stock Exchange also saw other companies post negative results, with Microsoft, Apple and Nvidia all in the red. But why did this happen?

There are several factors. First and foremost, concerns about the U.S. economy (the possibility of America going into a recession) caused the yen to fall sharply against the U.S. dollar. The Bank of Japan responded by raising its interest rate from 0.1% to 0.25%, and the yen rallied in response. In any case, stock markets around the world are not stable, and you never know when there will be a turnaround when your investment in a company goes into the red (some people spent a lot of money on Intel stock, and then the processor scandal broke…).

However, it might be a good idea to get into Nintendo shares now, because if any of these companies can recover quickly, it’s the big N, from which we’re waiting to hear about the successor to the Switch.

Source: WCCFTech