As it stand, the majority of analysts that comment on products and services that many investors look to for research really don’t know anything about what they are talking about. They tend to be very one side as well as riddled with false information. As this stands this is something that infuriates me, because ultimately this dictates how companies are perceived in the financial world, effecting business decisions that are ultimately damaging for anyone that considers themselves as a fan.
Let’s take a look at Nintendo’s stock (NASDAQOTH: NTDOY.PK) two days after the Xbox One reveal. Siting at an even $13.00 a share, Nintendo’s stock lost a full $1.00 UDS at 9:25 am in value and actually had a low point of $12.60 today. As a game consumer, think about that statement. That means that while the majority of Xbox 360 fans that have supported Microsoft’s system for years as well as the general gaming public are enraged at the reveal of Xbox One and all its trappings, the people that hold some of the most powerful sway to these companies have determined that the Xbox One, which is shown to be some glorified social media device rather a game console, is better than a console that, well just focuses on what it was meant to do and build for.
This sends the wrong message, and endorses bad business decisions though sheer ignorance. If we take a look at web sites like Motley Fool (www.fool.com
) and their Investing Commentary section, you will find hundreds of articles filled to the brim with miss information, and borderline lies passed as facts. You might be asking me, “What does one web site matter? I am sure that there are others that give advice and better information.” Well it matters because the majority of the time, if you use things like the Stock app on your Apple iPhone, one of Motley Fool’s articles will be in you top list of news about the company.
Another gem of a info source, Minyanville (http://www.minyanville.com/
) posted a lovely article that I am staring at right now that is titled “In Gaming Console Battle, Microsoft and Sony Are Going Toe to Toe”
in which the opening sentence stats “With Microsoft(MSFT) and Sony(SNE) set to release new consoles for the first time in eight years, the battle for supremacy has just begun, but Nintendo(NTDOY) is nowhere to be found.” I don’t want to litter my article breaking down everything that is wrong with this article but let’s just say it is a bastion of miss information that I encourage you to read to understand the general tenner of these articles that are shown to potential investors as “matter of fact” information. This is by no means the worst offender ether, and stands as tame in comparison to other articles that just strait out lie about sales information, and have blocked comments of people who point them to the accurate sales data, which I have seen in the past few years.
Now by all means I am not saying, “ Nintendo has been hitting it out of the park” They have their own issues they need to reflect on like timely game release, third party support options, as well as taking a bigger stance to help indie developers publish on their system. These are real Console issues and company information that should be looked at, but I can’t seem to be finding addressed outside of the enthusiast press, which is rarely glanced at by the same people that hold money in these companies. It is also has to be noted that the 3DS and the VITA are mostly pushed to the way side while talking about the company’s overall profitability, alongside manufacturing cost as well as profits per console. This is looked at as irrelevant data by most stock information site which is equally disconcerting.
At the end of the day, people are not looking or treading the game industry as an ever changing interactive medium, or even a real form of entertainment like movies, but rather a commodity that should always have a steady increase in value, like a resource that slowly gets depleted from this planet. I find this to be a scary practice that ultimately stands to fail, and when it does, it’s us, the fans who stand to lose.