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Shares in Wii and DS maker lag behind Nikkei average over the last month; investors’ already-high expectations and Sony’s improving PS3 fortunes blamed.

For the last two years, Nintendo has been the success story of the gaming world with its DS Lite and Wii hardware regularly topping sales charts and quintupling the company’s stock value. A growth rate like that is difficult to sustain, and Reuters is reporting this week that the company’s financial fortunes are finally starting to slow down.

In the last month, Nintendo shares have lost 8 percent of their value. While the Nikkei average was down as well, it still outperformed the Wii maker by dropping just 5 percent over the same span. While there hasn’t been any specific event to spark the sudden drop in Nintendo’s stock, Ichiyoshi Investment Management chief fund manager Mitsushige Akino told the news agency that investors are simply no longer surprised by the company’s success.

“The difference is market participants have now realized Nintendo’s potential, and it is pretty much factored in the share price,” Akino said. “Back in 2005, no one could image Nintendo being where it is now.”

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This entry was posted on Thursday, December 13th, 2007 at 6:05 pm and is filed under NINTENDO. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.