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The Tokyo Stock Exchange has crashed significantly, causing huge losses to major Japanese game companies. Companies such as Nintendo, Sega, Capcom and Square Enix are among the companies to experience a drop. The Tokyo Stock Exchange’s stock market has been plummeting for three consecutive days. As of August 5, 2024, the stock market dropped by 4,451.28 Yen from the previous day, which has gone on to make it the biggest drop since the crash of the stock market in 1987.
Out of the Japanese game companies that were affected, CAVE was affected the most on this day. They experienced a 23% drop, with Capcom following behind at 16%. Square Enix was the least affected company, experiencing a drop of 5%, as shown by statistics shared on X.
However, Nintendo also experienced a significant amount of loss. They saw a decline in their stocks for three consecutive days, causing them to hit a new low for the year. This comes at a relatively rough time for Nintendo, as they had just released their financial report for the first quarter of the 2025 fiscal year. In this report, it was revealed that they are experiencing heavy declines in sales, with a 46% drop in sales and a 70% decline in operating profits.
Capcom hit the limit down (which is when the maximum amount the price of a stock can decrease in a single trading day happens,) despite Capcom saying that they had positive forecasts for the fiscal year.
Of course, the Tokyo Stock market crashing significantly didn’t just affect companies like Nintendo, Capcom and Square Enix. It also affected major tech companies, such as NVIDIA, Apple and Microsoft.
To some, the crash of the stock market doesn’t come as much of a surprise. There were many factors that helped cause the market to crash, such as the massive amount of concerns over the US economy, as well as the rapid appreciation of the Yen against the dollar. To counteract this, the Bank of Japan has raised the interest rate from 0.1% to 0.25%, which helped the Yen gain significantly after this decision.
Whether the stock market will continue to crash or whether it will slowly return to normal remains to be seen, but this event helps serve as a stark reminder of just how volatile the stock market can be for those who choose to trade and purchase shares.
With the significant dip that Nintendo has experienced, people are considering buying up Nintendo shares so that they will make a decent profit once their losses have balanced back out to a normal level.
