The Impact of the Sendai Earthquake on the gaming market – 3/15/2011

The 2011 Sendai Earthquake has affected every aspect of life in Japan, but one of the hardest hit has been the technology industry. Home to several of the largest technology manufactures and video game publishers in the world, the devastation caused by the quake has impacted global markets with major.

On 5/14 the stock prices of many gaming publishers fell with Konami Corp. taking a hard 17% loss while Nintendo survived with only a 2% loss followed by Sony with a 6% loss on the Tokyo Stock Exchange (TYO). All companies listed on the TYO took a major hit at 1pm due to the second explosion at the Fukushima I Nuclear Reactor.

To no surprise, many major game publishers have delayed or cancelled the release of upcoming games this month while some have temporary shut down their online games. Looking into long term effects; several games could miss the Summer 2011 or Holiday 2011 release along with an absence at the 2011 E3.

However on the following day (3/15) most game publishers were able to make some gains on the TYO. Nintendo made the largest gain of 6% while Sony made a 7% gain and Capcom going from an 11% loss to almost 10% gain. Unfortunately Konami Corp. took another loss of 18%.

Due to a reaction of the ongoing crisis; the Tokyo Stock Exchange has lost 10% of its value with similar losses on the London Stock Exchange while on the New York Stock Exchange the Dow Jones fell almost 300 points at the opening bell (on 3/15). Japan is the world’s third-largest economy while purchasing 10% of U.S. exports.

Published for Bitmod

Original Link: The Impact of the Sendai Earthquake on the gaming market


About Stan Rezaee
I'm a writer from San Jose who has contributed to several online and print publications.

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