TOKYO — Nintendo stock plunged Wed nesday in Tokyo amid doubts about the consumer appeal of the Wii U, the much- ballyhooed successor to its hit Wii video- game console.
The demonstration of a prototype at the Electronic Entertainment Expo, the gaming industry’s annual convention, in Los Angeles on Tuesday appeared to leave investors disappointed and skeptical.
Nintendo Co. shares closed at $212.44, down more than 5 percent.
Shuji Hosoi, an analyst at Daiwa Securities Co., said it was unclear how successfully the machine would compete against smartphones and tablet PCs, with device-based gaming already having to vie against social networks.
It was hard to see how it is different enough to woo users of smartphones and tablet PCs back to gaming, he said.
“People are puzzled whether this will real ly sell,” he said.
Hosoi acknowledged that the stock price may recover if Kyoto-based Nintendo can convince investors that the new machine is as fun as smartphones and other new devices.
“But it would be extremely difficult because the competition is so intense,” he said, referring to products such as the iPad from Apple Inc. and other rivals. “People have already changed.”
The Japanese gaming giant behind Pokemon and Super Mario games said the Wii U will broadcast high-definition video and feature a touch-screen controller that can detect motion. Its price was not disclosed.
