Sony and Square Enix Stocks Fall; Nikkei Dubs Phenomenon "Dragon Quest Shock"
In the financial world, the equivalent of "Gate" as in "Watergate" is "Shock" as in "Sony Shock" or "Nintendo Shock." Basically, investors learn that a company's earnings outlook isn't as rosy as initially believed, this shocks them, and stocks plummet.
Nikkei coined the latest "Shock" in a story on Sony's falling stock prices today. Sony's stock has been continuing to fall for the past three days, and today it reached its lowest level of the year. Nikkei's headline for this story read "Dragon Quest Shock Causes Decline."
The head of Rakuten Investment Management told the paper that investors may be concerned that the appearance of DQX on Wii and Wii U could lead to Sony's games business losing customers. This concern, combined with problems in the company's television business, and an overall market slowdown due to an appreciating yen and political problems in Europe, have pushed the stock down.
Sony isn't the only company feeling the Dragon Quest Shock. Square Enix's share price has been falling since the announcement. At present, it's down over 10% from yesterday.