Industry News | Government Causes Nintendo Stock Drop

Nintendo have announced a decline in its shares this week after revealing that Japan's government will be selling its stake in the company, around 1.4% of outstanding stock.

According to Bloomberg, the company's stock fell 2.7% to 32,950 yen today. The 1.987 million shares the government previously held will be priced between March 5th and 8th, valued at 67.3 billion yen ($557 million) as of Friday.

Nintendo aims to increase the number of individual shareholders to increase the company's liquidity, with recent products like Wii and DS causing an increased interest in its stock.

"The news suggests a worsening of share supply and demand, and comes at the time of concern that the stock's price is high."
Yoku Ihara, head of equity research at Retela Crea Securities Co. in Tokyo.

In the past 6 months the company's stock gained 43 percent.

Stay tuned for updates..