Nintendo implemented a 10 to 1 stock split to reduce the price of an individual stock. The 133-year-old Japanese gaming giant hopes the move will make it more affordable for a group of investors to buy shares in the company.
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Nintendo implementing it previously announced stock split 10 get 1 Thursday aimed to lower the price of an individual stock to attract new investors to the more than century-old Japanese gaming giant.
Nintendo’s share price reflects the split on the Japan Stock Exchange website. Nintendo shares closed at 6,043 Japanese yen ($41.76) on Thursday, after closing at 59,700 on Wednesday.
Each share of Nintendo common stock has been divided into 10 shares, so the price per share will decrease.
The move is designed to attract more investors. In Japan, it is common for investors to buy a block of 100 shares in a company. According to Nintendo’s old stock price, the minimum price is 5.97 million Japanese yen, or more than $41,200. With the split, 100 shares would be priced at 604,300 Japanese yen or just over $4,170 at Thursday’s closing price, potentially making it more affordable for individuals to invest in Nintendo.
Serkan Toto, CEO of Tokyo-based game consulting firm Kantan Games, told CNBC: “That minimum investment of around 6 million yen is enough to get one student through the entire program. studied for 4 years at a Japanese university.
“It’s time for Nintendo as a consumer-oriented company with such strong brand recognition to lower the stock price.”
“Nintendo is now more affordable especially for young people, a type of investor that has grown in Japan in recent years,” he added.
Some of the big tech companies, including Apple onend Amazonyes announced stock splits over the past few years. While stock splits don’t fundamentally change the company in any way, they do make it cheaper to buy stock in the company.
The split comes at a testing time for Nintendo, a 133-year-old company, amid broader challenges in the video game industry. In the second quarter of the year, Nintendo’s operating profit fell 15% while Sales of its flagship Switch console also fell. The Japanese gaming giant is facing supply chain challenges that are hindering its ability to meet demand for Switch.
Still, Nintendo’s games are still appealing to a wide range of consumers. The company said this month that Splatoon 3 sales in Japan have surpassed 3.45 million units – a domestic record for any Nintendo Switch software within the first three days of sales. Splatoon 3 was released on September 9.
Nintendo is also gearing up to release popular titles in the coming months, including a new game in the Pokemon franchise.
