Nintendo carries out 10-for-1 stock split to lure new investors to the Japanese gaming giant

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  • Nintendo carried out its previously announced 10-for-1 stock split Thursday with the aim of reducing the price of an individual share to attract new investors.
  • Nintendo’s stock prices reflect the split on the Japanese Stock Exchange website.
  • After closing at 59,700 on Wednesday, Nintendo’s shares closed at 6,043 Japanese yen on Thursday.
  • The split comes at a testing time for Nintendo, a 133-year-old company, amid widespread challenges in the video game industry.

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Nintendo on Thursday carried out its previously announced 10-for-1 stock split, aimed at reducing the price of an individual share to attract new investors to the century-old Japanese gaming giant.

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Nintendo’s stock prices reflect the split on the Japanese Stock Exchange website. After closing at 59,700 on Wednesday, Nintendo’s shares closed at 6,043 Japanese yen ($41.76) on Thursday.

Nintendo shares fell more than 1% in Asia on Friday afternoon.

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Each share of common Nintendo stock is divided into 10 shares, so the price per share is reduced.

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The move is designed to attract a wider pool of investors. In Japan, typically investors must buy a block of 100 shares in a company. At Nintendo’s old share price, that would cost a minimum of 5.97 million JPY, or just over $41,200. With the split, 100 shares would cost more than 604,300 Japanese yen, or $4,170 at Thursday’s closing price, potentially making it more affordable for individuals to invest in Nintendo.

“A minimum investment of about 6 million yen is enough to put a student through a full four-year study program at a Japanese university,” Serkan Toto, CEO of Tokyo-based games consultancy Kantan Games, told CNBC.

“It was really time for Nintendo as a consumer-facing company with such a strong brand recognition to drive down the share price.”

“Now, Nintendo is especially more affordable for young people, the type of investor that’s been growing in Japan in recent years,” he said.

Several major tech firms, including Apple and Amazon, have announced stock splits over the years. While stock splits do not fundamentally change the company in any way, they do make it cheaper to buy shares in the firm.

The split comes at a testing time for Nintendo, a 133-year-old company, amid widespread 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 game console also declined. The Japanese gaming giant is facing supply chain challenges that are hampering its ability to meet demand for the Switch.

However, Nintendo games are still attracting a wide range of consumers. The company said this month that Splatoon 3 sales in Japan surpassed 3.45 million units — a domestic record for any Nintendo Switch software within the first three days of sales. Splatoon 3 was launched on 9 September.

Nintendo is also gearing up to release popular titles, including a new game in the Pokémon franchise, in the coming months.

Credit: www.cnbc.com /

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