As the AI craze fades, investors are taking a second look at technology concepts that were overhyped in the first place. Many stocks that have soared due to the popularity of AI have experienced considerable corrections during this period. On the contrary, the stock prices of Japan’s established game companies began to rise steadily at this time. The game businesses of Nintendo and Sony invariably delivered beautiful results, allowing investors to see the value of game companies again.
Why are the stock prices of Japanese game companies taking off at this time?
Industry analysts believe that the dissipation of this wave of “AI bubbles” has caused investors to begin to rethink what long-term valuable companies are. Compared with companies that only rely on AI concept packaging but no real revenue support, companies like Nintendo with stable IP, fan base, and product rhythm are better able to break out after market sentiment calms down. Players’ expectations for Switch 2 and the success of the “Mario” movie prove that the IP monetization capabilities of these established companies are still strong.
The constitution of Japanese game companies makes them better able to survive fluctuations
Compared with young companies that rely on a popular concept to make a living, the IP inventory, fan base, and product development experience accumulated by established Japanese game companies over the years give them a stronger ability to withstand market fluctuations. Investors are now increasingly aware that rather than chasing uncertain AI concepts, it’s better to get back to fundamentals with actual products and fan bases.