GungHo Stock Plunges: “The Social Bubble Finally Bursts!?”

puzzleanddragons

One-shot wonder social gaming publisher GungHo Online’s days of outstripping Nintendo in market cap look to be well and truly over – the company’s value has plunged by over a third in mere days, leaving nobody in any doubt as to the permanence of social gaming’s ascendancy.

Even so, the company probably still has a very long way to fall, as it attained almost all of its value in the last few months of its 15 year history:

gungho-fall

Japan’s stock markets appear to have been overheated by unrealistic (or premature) expectations of Abenomics and this resulted in a record drop for the entire market, but the collapse of GungHo’s share price began well before this, and tellingly Nintendo was left almost untouched:

nintendo

Meanwhile, Sony has become a market darling on the news that it has already won the console war for the next generation and likely has years of gleefully crushing Xboxes underfoot ahead of it:

sony-stock


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    62 Comments
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    Comment by Anonymous
    21:04 24/05/2013 # ! Quality (+1.0)

    Right now the Square Enix CEO is saying, "FUCK!"

    Avatar of Solace
    Comment by Solace
    04:34 25/05/2013 # ! Neutral (0)

    They deserve their downfall.

    Comment by Anonymous
    23:08 25/05/2013 # ! Neutral (0)

    hah, he is most likely saying "that will never happen to us! we have Final Fantasy!"

    Comment by Anonymous
    06:31 25/05/2013 # ! Neutral (+0.4)

    Called it.

    Social gaming won't last forever because there's no long-term thinking behind it all.

    Look at Zynga and how miserable they are after Farmville's rise and fall, and also how they spent $300 million for OMGPOP and Draw Something before they drove that into the ground.

    That and it was only eventual that people would get bored of Puzzles & Dragons.

    [Pyon!]

    Comment by Anonymous
    13:55 26/05/2013 # ! Neutral (0)

    Or the Korean execs decided to dump their shares.

    Avatar of nope
    Comment by nope
    10:29 24/05/2013 # ! Good (+0.4)

    “The Social Bubble Finally Bursts!?”

    Oh man I sure hope so.

    Avatar of HouseLife
    Comment by HouseLife
    15:41 24/05/2013 # ! Good (+0.6)

    Anyone who knows anything about stocks knows that eventually a stock based on air will rise and fall like nobody's business, I just didn't expect it to crash so spectacularly in a few days.

    I am actually happy.

    Comment by Anonymous
    18:24 24/05/2013 # ! Neutral (0)

    Like the Apple bubble that's leaking air right now...

    Avatar of HouseLife
    Comment by HouseLife
    19:21 24/05/2013 # ! Neutral (+0.2)

    Apple isn't doing horribly. That was much like facebook, where there was really nothing there but what you saw. Apple does deal in physical products (that happen to deal in air :P) so they actually do have merit in what they do, even though I dislike their products and their practices myself.

    Comment by Dark Mage
    10:24 25/05/2013 # ! Neutral (0)

    Apple actually does design their own chips for the iOS line.
    This is why they perform so well the OS and hardware are very tightly coupled.
    I'm not an apple fan boy but just about every other tablet generally feels somewhat clunky compared to the ipad.

    Comment by Anonymous
    23:13 24/05/2013 # ! Neutral (+0.2)

    Anyone thinking that social gaming was anything but a quick bubble was completely out of their mind. If was able to survive the long haul then video game companies who have long gone out of business would have made it. There was a long established pattern of this sort of video game market bubbles, all you had to do is look at the market as a whole.

    The who won the eighth generation is also unrealistically premature bullshit. At bare minimum we need to see E3.

    Comment by Anonymous
    05:37 25/05/2013 # ! Neutral (+0.2)

    You gotta admit it's not looking too great for Microsoft, though.

    Comment by Dark Mage
    10:20 25/05/2013 # ! Neutral (0)

    It's because Steve Ballmer is an idiot.

    Comment by Anonymous
    23:10 25/05/2013 # ! Neutral (0)

    you know... Sony clung to the social bubble too

    Comment by Anonymous
    08:36 25/05/2013 # ! Neutral (0)

    It's better if square enix keep making social games instead of those stupid, boring. gay and cheap 'jrpg'

    Comment by Anonymous
    16:41 25/05/2013 # ! Neutral (0)

    jrpg should be called qrpg for QueerRPG. Actually drop the rp, cause there's no actual role playing. They're just queerish games period.

    Avatar of cascade2013
    Comment by cascade2013
    23:14 24/05/2013 # ! Neutral (0)

    Insider trading!!

    Avatar of dukemagus
    Comment by dukemagus
    00:23 25/05/2013 # ! Neutral (0)

    Say... Does Artefact studies economy? There isn't a lot of sites keeping such attention in stock prices of game/anime companies around.

    Comment by Anonymous
    13:57 26/05/2013 # ! Neutral (0)

    It would be an awesome niche for Sankaku to corner.

    Comment by Anonymous
    08:35 25/05/2013 # ! Neutral (0)

    It's better if square enix keep making social games than those stupid, boring. gay and cheap 'jrpg'

    Comment by Anonymous
    08:46 25/05/2013 # ! Neutral (0)

    It's better if they make nothing. Just die already. Or give us Rad Racer 3.

    Comment by Anonymous
    19:17 26/05/2013 # ! Neutral (0)

    michivieus glee heals... or so i have heard.

    Comment by Anonymous
    19:20 27/05/2013 # ! Neutral (0)

    I'd like to personally thank fArtefact for pointing this one out. Easily an overvalued stock. And my clients who made a nice chunk of change late last week on put options thank you too. Dumbass.

    Comment by Anonymous
    02:18 30/05/2013 # ! Neutral (0)

    no problem. equal trade.

    Avatar of warjoke
    Comment by warjoke
    10:43 25/05/2013 # ! Neutral (0)

    Social games in a nutshell.

    Candy crush saga, your up next.

    Avatar of Fayt
    Comment by Fayt
    15:07 25/05/2013 # ! Neutral (0)

    Just wait 'till the Kingdom Hearts series is over then you ca burn all you like.

    Avatar of Kohaku
    Comment by Kohaku
    13:00 25/05/2013 # ! Neutral (0)

    We're talking about Japan here, Sony already won over Microsoft even before any news about the new generation.

    Comment by Dark Mage
    10:18 25/05/2013 # ! Neutral (0)

    I said it was over valued just like Facebook stock was and the bubble was going to pop.

    Avatar of xibalba88
    Comment by xibalba88
    10:32 24/05/2013 # ! Neutral (0)

    That sucks, wonder if SquareEnix is still planning on focusing their sources on the "social gaming" experience and produce more games on the over crowded android and ipod market.

    Avatar of HouseLife
    Comment by HouseLife
    16:11 24/05/2013 # ! Neutral (+0.2)

    Overcrowded is the problem. Unfortunately they're trying to hop a trend as the trend is dying. They either must reinvent their social gaming to usher in a new form, or they're going to go with substandard rapid creations like that crap that was posted here the other day and fail even further. For now they can blame Wada, but it really wasn't him who screwed everything up.

    Comment by Anonymous
    11:42 24/05/2013 # ! Neutral (0)

    Another case of pump-and-dump from speculators looking to make a quick buck. The only losers here are the ones that bought into the hype and went long on a one trick pony tech stock.

    Comment by Anonymous
    12:55 24/05/2013 # ! Good (+0.6)

    like square enix. Social games are shit. I'm unfriending anyone of facebook where i see that they play this crap

    Comment by Anonymous
    12:46 24/05/2013 # ! Neutral (0)

    History repeats itself.

    Comment by Anonymous
    12:59 24/05/2013 # ! Neutral (0)

    If it not for the so many repetitive game that had almost the same style gameplay out there, I would still cheer for social gaming.

    Not many company had innovation in their mind, they are more like money sucker.

    Comment by Anonymous
    21:33 24/05/2013 # ! Neutral (0)

    Hmm... this doesn't surprise me at all, that's how the stock market works. It reaches a climax, then declines some... then it drops more and more.
    Sony's value might continue rising for now, but soon it'll fall again. IIRC the PS4 presentation is in June, depending on what shit they'll offer, their stocks could plummet or rise drastically. Not surprising, just analysis -_-

    Well... it works the same with stockings. Just when they sit high and you enjoy them, the woman will start dropping them. She undresses and the stockings are gone!

    Avatar of Riiku
    Comment by Riiku
    03:40 25/05/2013 # ! Neutral (+0.2)

    Except that when stockings are gone from the woman, everyone wins. Not so much when stock prices falls.

    Comment by Anonymous
    14:23 24/05/2013 # ! Neutral (0)

    SO JAPAN, WHEN WILL YOU BE ERASED NOW?

    Comment by Anonymous
    21:57 24/05/2013 # ! Neutral (0)

    Go away Yumekichi11! How I know it's you? The internet is a conspiracy network from Japan... to find YOU. Stop your hatred and get a life! And stop posting pics of beheaded pigs on your blog, that's disgusting!

    Comment by Anonymous
    16:59 24/05/2013 # ! Neutral (0)

    i would have shorted that shit a life time ago

    Avatar of Michael
    Comment by Michael
    Avatar of Accelerator
    Comment by Accelerator
    10:25 24/05/2013 # ! Neutral (-0.2)

    Still, never heard of them. I'm sure not many people will notice if they go under.

    Comment by Anonymous
    10:36 24/05/2013 # ! Neutral (+0.2)

    Gung Ho doesn't only work in the mobile/online market, even though they're mostly known for Ragnarok Online and Puzzle & Dragon, they're also doing a lot in the console and handheld market. Including, but not only, this:

    http://www.siliconera.com/2013/01/29/grasshopper-manufacture-acquired-by-gungho-online-entertainment/

    They also aquired Game Arts before that. They're also the ones that bring previously Japanese-only PS1 games to the Playstation Network.

    I didn't really care for them until they decided to aquire two great legitimate game developers, honestly. I just thought I'd inform people a bit more about them...

    Comment by Anonymous
    10:35 24/05/2013 # ! Neutral (0)

    They made Hero of Leviathan, a...boring, ridiculous, low budget nds game. I wont miss them much.

    Comment by Anonymous
    12:49 24/05/2013 # ! Neutral (0)

    Ragnarok Odyssey is pretty good, though.

    Comment by Anonymous
    17:33 24/05/2013 # ! Neutral (0)

    I think this is relevant...

    http://www.siliconera.com/2013/05/23/puzzle-dragons-rebuild-of-evangelion-collaboration-adds-kaworu-nagisa/

    Comment by Anonymous

    Love all the praise for Sony when all they've really announced is they have a console in the works. Microsoft gave more info. I'll laugh so hard when Sony pulls worse stuff than the MS rumors (not fact) state. We know they will, too... its Sony.

    Comment by Anonymous
    14:17 24/05/2013 # ! Neutral (+0.4)

    ...Not sure what world you live in. MS confirmed in Q&A that used games are a no-go without some kind of fee and that you need to connect to their servers daily to maintain functionality.

    Though if you get excited over tv, sports, and Call of Duty, I guess Xbox's reveal must have been amazing to you.

    http://www.youtube.com/watch?v=KbWgUO-Rqcw

    Comment by Anonymous
    13:45 24/05/2013 # ! Neutral (+0.2)

    It's not what either console has at launch, it's the features they add/remove ~after~ launch I'm more worried about.

    Comment by Anonymous
    21:39 24/05/2013 # ! Neutral (0)

    Metro... Facebook... apps... restricted pay-to-use services... annoying ads en mass...

    Wait, that's what became of my 360 -__-

    Comment by Anonymous

    http://www.imdb.com/title/tt0091159/

    Comment by Anonymous
    12:48 24/05/2013 # ! Neutral (0)

    That was a bad movie

    Comment by Anonymous
    12:53 24/05/2013 # ! Neutral (0)

    I haven't even seen it, I'm surprised someone here actually has, lol.




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