NINTENDO SHARES FALL ON ANNOUNCEMENTS
August 25, 2000

Yesterday was the day many gamers, Nintendo and non-Nintendo fans alike, have been waiting for, as it featured the unveiling of both the portable Gameboy Advance and the Gamecube console. However, Nintendo's stockholders did not feel the excitement in the air.

Prior to Spaceworld, some analysts were expecting to raise Nintendo's target price from 16,000 yen ($155) to as high as 25,000 yen ($245) if the showing wowed them enough.

Reuters reports that at market close on Friday, Nintendo's shares were at 18,060 yen ($175 - down 3.3%), rounding out a more than 10% drop for the week.

The problem? Something most of us have been expecting for a while: delays. Investors are concerned that Nintendo, having announced new, later release dates for both systems in all territories, will not be able to get the systems to the market fast enough, which is further complicated by the heavy competition in the industry at this time.

Fortunately for Nintendo, they are up in the year to date, and some analysts have raised the target price. Unfortunately, if they're unable to meet the current projected release dates, things could get worse.

Takashi Oya, senior analyst at Deutsche Securities, commented on Gamecube, "It's not good enough for us to raise the investment rating for the company."