China’s Open Market Leads to Huge Stock Jump for Nintendo

Shares increase 11 percent as investors ponder the potential.

By Andy Hoover. Posted 01/08/2014 19:00 Comment on this     ShareThis

News Desk Masthead - Wii U 3

It turns out that one way to make stoke brokers start frothing at the mouth is to open up a previously restricted market with over a billion potential new consumers.

Yesterday we reported that, after 14 years of government enforced prohibition, China has once again opened its borders to foreign video game platforms, and investors were quick to respond to the opportunity presented Nintendo. This sudden flux of interest in the company drove its stocks up by 11 percent, bringing its value to its highest point in over two years. Mind you, this is well before Nintendo has even announced that it plans to not just enter the market, but adapt to the restrictions that require all hardware to be built in China in specific industrial areas and be approved by China’s censorship-happy government.

While it is far too early to make any solid predictions, I can’t help but feel that Nintendo is in a very good position. While it is true that the Chinese economy is on the rise, the fact remains that your average Chinese consumer still doesn’t have the spending power of the average North American, European, or Japanese consumer, and Nintendo remains the most value conscious of all the major hardware manufacturers.

Source: Nintendo Life

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