Nintendo, Capcom and other major Japanese game companies’ shares plummet as Tokyo Stock Exchange sees record-breaking fall 

At least 92 Japanese video game and entertainment related companies, including giants like Nintendo, Capcom, Square Enix and Sega, saw their stock value plummet on August 5, with some hitting limit down (source: GameBiz). What’s behind this? 

After falling for the third consecutive day, the Tokyo Stock Exchange’s stock market index finally dropped by 4,451.28 yen from the previous day, making for the biggest drop since the stock market crash of October 1987. This was influenced by global factors, such as growing concerns over the US economy, as well as the yen’s accelerated appreciation against the dollar (which the Bank of Japan had an effect on last week).

This situation has inevitably influenced game-related stocks across the board. Nintendo saw a decline for three consecutive days and finally hit a new low for the year. This comes right after the company announced its consolidated financial results for the first quarter, which showed a yearly decline in sales of 46% and a 70% drop in operating profit. Other major companies like Capcom hit limit down (the maximum amount the price of a stock can decrease in a single trading day) despite having positive forecasts for the fiscal period.