Nintendo Co. (7974) fell the most since May after the company cut the price of its Wii U video-game console by $50 as it attempts to boost sales in the months before competing machines are released.
Nintendo fell 6.1 percent, the biggest drop since May 23, to 11,120 yen at the close in Tokyo trading. The stock had gained 31 percent this year through yesterday’s close, compared with the 30 percent jump in the broader Topix index. Nintendo announced the price cut at the same time it said it would introduce the Nintendo 2DS, an entry-level portable game player that can run the same games as its 3DS and costs just $129.99.
“The stock market didn’t think highly of the price cuts and the introduction of the 2DS,” said Tomoaki Kawasaki, an analyst at Iwai Cosmo Holdings Inc. (8707) in Tokyo.
The suggested price of the Wii U in the U.S. will drop to $299.99 on Sept. 20, Kyoto, Japan-based Nintendo said Aug. 28 in a statement. The company won’t lower the console’s cost in Japan, where it sells for a suggested 30,000 yen ($307). The 2DS portable machine will go on sale Oct. 12.
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