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What’s Wrong With Nintendo’s Stock?

Call it the hard bigotry of high expectations. Nintendo (NTDOY) may be coming off a blockbuster 2007 when Wii units and DS portables blew off store shelves, but that hasn’t stopped the Japanese game-maker’s stock from hitting a seven month low. The company’s stock fell 5.9% today, as Japanese exporters brace themselves for a possible recession States-side. Akio Yoshino, chief economist at Societe Generale (SOGN.PA), told Bloomberg today, “There’s an increasing chance that the US will post negative growth in the first quarter, and that’s tough news for cyclical markets like Japan.”

Setting those very real concerns of global economic slowdown aside for a moment, it may be the time to ask if the extent of today’s slide has any implications for the high-high expectations that the company’s 07 performance may be creating and if the stock is in for even tougher times ahead as the U.S. market for console hardware cools in 2008. (Yes, it’ll grow but at a slower rate.)