oh no
Nintendo, Capcom, and other game studios heavily affected as Japan Stock Market plummets
Panic as the Japanese Nikkei registers its second-biggest loss in history, heavily impacting all video game related companies from the country
Today is not a good day for investors around the world. The Tokyo stock market has collapsed, confirming the bad feelings at the close of Friday, when it was left at a 6% decrease when it was clear that losses would have been higher had the market not closed for the weekend.
Once it opened this Monday, operations rushed to reach a calamitous 12.4% loss in value of the Nikkei, the second largest drop in its history, only surpassed by the 14.9% it lost on ‘Black Monday’ ' which announced the end of the party of the colossal Japanese eighties economic bubble. As usually happens in these cases, panic has spread rapidly throughout the world: the South Korean stock market had to stop sales operations, electronics companies in Taiwan are experiencing heavy losses and there are investment applications that have decided to close the window on the wave of sales that is coming. The fear of a recession in the United States, together with the open bar in Japanese investment due to the weakness of the yen, has led to this collapse, which was also preceded by the increase in interest rates by the Bank of Japan in order to put a stop to certain investment practices around the yen that were going out of their way.
A catastrophic day in the stock markets
As far as video game companies are concerned, it is a disastrous day for the value of companies, with Cave, Capcom, and Nintendo leading the losses, although none are spared. The resulting losses for the day for companies in the sector is as follows:
- Cave -23%
- Capcom -16%
- Nintendo -15%
- Sega -13%
- Nexon -13%
- Marvelous -10%
- Cyberagent -10%
- Konami -8%
- Sony -6%
- Koei Tecmo -6%
- Square Enix -5%
It must be said that this is not the end of the world. Many Japanese companies were at historic highs, taking advantage of the situation. Nintendo for example, even with that drop, continues to be in one of its best historical moments of stock market value and 6% above its value a year ago. However, no company in the world, nor its shareholders, find it funny to be told that their company has lost 15% of its value in one day. We will have to see how the situation evolves, see how the New York stock market evolves, and be attentive to whether these fears of recession are justified, to verify the extent of the bleeding.
Follow MeriStation USA on X (formerly known as Twitter). Your video game and entertainment website for all the news, updates, and breaking news from the world of video games, movies, series, manga, and anime. Previews, reviews, interviews, trailers, gameplay, podcasts and more. Follow us now!