Nintendo Co. Ltd revealed the first glimpse at interactive figurines of some of its most popular characters, including Mario and Pikachu, at the video gaming expo E3. The company is seeking to boost the sales of its Wii U console, which has failed to reach initial analysts sales growth estimates.
The company has obviously decided to enter the “toys-to-life” category with the so-called “amiibo” models. This business segment became popular mostly thanks to the “Infinity” series of Walt Disney Co. and the “Skylanders” series of Activision.
Mr. Michael Pachter, who is one of the analysts working for Wedbush Securities commented on Nintendo for the Wall Street Journal, saying that releasing new games may be beneficial for it and help it attract the true fans of the company, but it is not likely to draw the attention of new customers. Mr. Pachter said: “They lack humility. Theyve lost everyone except their core Nintendo fans.”
Nintendo Co. Ltd was seriously affected by three consecutive years of operating losses, which was why the company was left by some big outside publishers. Now Nintendo becomes more oriented in the “toys-to-life” segment, hoping that its most-beloved videogame characters such as Mario and Link would turn out to be beneficial and would help it to turn back the company to profit.
The company also shared that it intends to make a series of its characters interactive figurines that is plans to release until the Christmas holidays of 2014.
The unveiling of the figurines came only a day after the companys President Satory Iwata made an online presentation for the annual Electronic Entertainment Expo, revealing six new titles for Nintendos game console Wii U. The company also revealed a toy platform for its Amiibo console, which is similar to Skylanders of Activision Blizzardd Inc.
Hideki Yasuda, who works at Ace Research Institute, commented on the companys situation for Bloomberg, saying: “To improve sales of the Wii U, Nintendo needs to produce hit titles. It’s not clear whether new game titles developed by Nintendo will sell well or not.”
Nintendo Co. Ltd was 1.50% down to close at 11,515 Japanese yen per share yesterday, marking a one-year change of +21.59%. According to the information published on the Financial Times, the 14 analysts offering 12-month price targets for Nintendo Co. Ltd have a median target of 10,950, with a high estimate of 19,000 and a low estimate of 9,000. The median estimate represents a -7.91% decrease from the last price of 11,890.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
