Multiple high-profile game companies, including CAPCOM, Nintendo, SEGA, and others, have been affected by a large share price drop in the Japanese stock market. After a significant drop across the board in the previous day’s trading, Monday has seen the single largest one day fall in share prices since 1987.

The share price fall has affected almost every household-name Japanese game company, including SEGA, CAPCOM, Nintendo, Konami, Koei Tecmo, Square Enix, Sony, Nexon, Marvelous, Cyberagent, and many more besides. Companies have seen falls of between five and 15 percent with the Japanese market closing earlier this morning. 

Image Credit: Kakidai

The Japanese index is down 10% overall as a global downturn in stock prices widens. Last month, Japan found itself in an uncharacteristic financial slump as the Yen fell to a 38-year low against the Dollar in early July. It rallied somewhat later in the month, but remains low against the Dollar, Pound, and other currencies. Today’s stock fall has seen the Yen rise in value in response.

The fall in Japanese game company stocks has been mirrored by a decline across the tech industry, especially in the US. There, tech companies, but especially those linked with AI, have seemingly taken a hit in the wake of a fall in investor confidence.

How these stock price falls will affect the gaming industry remains unknown, but will likely fuel calls from investors and shareholders to increase profits, and quickly. This could likely mean releasing games earlier, cutting costs and projects, and other negative outcomes – at least from a consumer perspective. 

Shareholders will see the need for cuts and compromise as necessary to maintain dividends. Last month, a Capcom meeting transcript revealed that shareholders had questioned why the company couldn’t push the release of Monster Hunter Wilds up to December 2024, bringing its profits into an earlier quarter. The transcript showed a Capcom executive gently rebuffing this suggestion stating “We plan to announce the release timing for the latest Monster Hunter title once preparations are complete.”

Overall, today’s share price drop could potentially cause huge issues within gaming, and not just within SEGA, Nintendo, Konami, CAPCOM, and others. In an industry already racked with layoffs and cancellations, a new financial crisis could spell yet more problems.


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