serkan AT kantan-games.co.jp

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GREE Shares Drop 9.64% Today, DeNA Down 1.33% [Social Games]

GREE and Mobage operator DeNA saw their share prices dropping like a rock on Monday and stabilizing yesterday. But after GREE announced their earnings yesterday, the downward trend is continuing.

I have a feeling that the market was just waiting for an external shock factor like the possible regulation to hit the industry and that this isn’t the end of this negative trend.

As I mentioned months ago, gacha are key for the earnings of social gaming companies in Japan (1st-party and 3rd-party game providers alike) and regulation of this game mechanic will hit the industry hard.

This is how GREE’s stock did today:

Chart for DeNA:

The Nikkei index as a whole fell 1.5% today.

Serkan Toto About Serkan Toto
I am the CEO & Founder of Kantan Games, Inc., a Tokyo-based game industry consultancy focused on the Japanese market. Please subscribe to updates on this site via RSS or Email.