Konami shares see biggest drop in nearly four years
- Posted November 2nd, 2007 at 07:37 EDT by Mike Harradence
- 2,702 views
- 15 Comments
News of Metal Gear Solid 4’s delay has resulted in Konami Digital Entertainment’s shares witness the largest decline in almost four years, with the company recording a drop of 6.8 per cent on the Tokyo Stock Exchange yesterday morning.
This puts shares of the Japanese software giant at its lowest since December 8, 2003.
“Investors were active sellers today because of disappointment over the delay”, said Hirotoshi Murakami, analyst for Mitsubishi UFJ in a telephone interview with Bloomberg.
“It may be the company's strategy to boost earnings next fiscal year with the game software.''
Konami announced yesterday that the PlayStation 3-exclusive title would now be released in the second quarter of 2008, having previously been scheduled for release this winter.
Source: Bloomberg
Comments
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The Cleaner
- 7:58am GMT - November 2nd, 2007
- 3
Sure - If the game ships 2nd Quarter the profits miss Konami's financial year.
Shareholders who have in effect have lent Konami their money will rightfuly expect dividend payment come June. With MGS shipping late, the company gets all the cost but no pay. This means retired people waiting on their dividend checks wont be happy going hungry for a whole year - hence its better to cut losses now and move the money to an investment that pays its way.
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PS3-The Ultimate Machine
- 9:20am GMT - November 2nd, 2007
- 4
MGS 4 is probably the biggest game EVER.And it being delayed really is sad for me as a future ps3 owner.
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RagingStorm |
RagingStormX- 10:20am GMT - November 2nd, 2007
- 6
Hmmm....I wonder if I can buy some Konami shares, since its so low now? I am sure it wil sky rocket again once the game is released....or atleast I hope so.
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hazeblaze
- 10:52am GMT - November 2nd, 2007
- 7
Don't know if you guys realise the full impact of this news!!! Quarter 2 of a fiscal year are the months July-Sept!!! It makes sense for Konami b/c a Sept release would give them momentum going into the next holiday... but this SUCKS for gamers. That's almost another year wait!!!
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