Nintendo Stock Plummets

Nintendo stock today dropped to a seven-month low as Japanese stock plummeted for a second day in reaction to contracting U.S. service industries and fear of a recession.

Nintendo fell 5.9 percent to 45,800 yen, the lowest it's been since July 2 and Rohm Co, the maker of parts of the Wii's controller, dropped 6.4 percent, heading for the lowest close it's seen since January 1997. The Kyoto-based company yesterday lowered its annual net-income target by 25 percent for the year, which lead to Mizuho Securities Co. downgrading them to a hold from a buy.

Nintendo sold three times as many Wii in the U.S. as they did in Japan last quarter, seemingly tying the companies financial success to the U.S. economy.

Japan Stocks Fall as U.S. Services Contract; Nintendo Drops [Bloomberg]


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