• At Globe Live Media we tell you why it is now possible for you to invest in the Japanese video game company Nintendo thanks to the drop in the price of its shares

Nintendo, one of the most important video game companies in the world, finally made the 10-for-1 stock split, after announcing this move in May of this year. What does this mean for you as an investor if you are interested in investing in this company that, possibly, has given you so much joy in your childhood?

Nintendo’s stock split implies that each share is divided into 10 shares now. In this way, the price of Nintendo shares has decreased substantially.

As of last Wednesday, September 28, before the split was executed, a share of Nintendo traded for 59,700 yen, equivalent to approximately $412, on the Japanese stock market.

Splitting by 10 for 1 means that this price was divided into 10 equal parts, so the new price of each Nintendo share is now around $40 (it closed at $41.76 on Thursday).

This Nintendo plan aims to make its shares more accessible to smaller investors, hoping to increase its shareholder base with some of these new buyers, since in Japan, an ordinary investor must buy a block of 100 shares of a company. So, at the stock price, investing in Nintendo would have cost him roughly $41,200.

Now, investing in Nintendo would only cost about $4,000, making it much more accessible to small investors.

This 10-for-1 stock split comes at a time when the company is facing a number of challenges, including dealing with supply chain failure, which has made it difficult to meet demand for Nintendo Switch consoles. , the hybrid model between desktop and portable console that has become a worldwide success and has become one of the best-selling consoles in Nintendo history.

Precisely, the difficulties of the supply chain have caused operating profits from the sale of Nintendo Switch consoles to fall by 15%.

However, the outlook for Nintendo is not entirely negative, as sales of its most recent game, Splatoon 3 (a third-person shooter), have broken sales records with more than 3.45 million units sold.

Nintendo is one of the longest running entertainment companies in the world. This 2022 celebrates 133 years of existence, and has been dedicated to the development and sale of card games, electronic toys and video games, both at the hardware and software level, and is currently considered one of the most important and successful video game companies. of history, in conjunction with the Xbox brand of Microsoft and the Playstation brand of the Japanese company Sony.

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