Nintendo shares hit by Nikkei exclusion

<p>Shares in Nintendo slumped after it was excluded from the Nikkei.</p>

Shares in Nintendo have fallen badly this week after it was confirmed the video game firm is not going to be added to the Nikkei.

The share price of the company dropped by more than eight per cent yesterday (September 9th) after it was announced the brand had missed out on gaining admission to the index.

Jay Defibaugh, an analyst at CLSA in Tokyo, explained there are some negative signs for the future of the firm, noting: "The early signs of key first-party software inducing a major turnaround in Wii U console fundamentals are not promising, and the outlook for third-party support is grim."

Some analysts had predicted a promotion to the Nikkei could be in the offing for Nintendo after its stocks rose by over 30 per cent this year, reports Bloomberg.

Mr Defibaugh also suggested younger generations are increasingly using their mobile devices for gaming and this could become a problem for Nintendo in the coming years.

Despite Nintendo not being added, the Nikkei has had a strong start to the month and has recorded gains every day in September apart from last Friday.

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