Stadia Reveal Causes Nintendo and Sony Shares To Drop Almost 4%

Google portrayed the Stadia when it announced its streaming based platform earlier this week as “the future of gaming”. And it looks like the stock market is buying into that rhetoric, apparently, because the reveal of Stadia was followed by the share prices for Nintendo and Sony dropping by almost 4% each, Financial Times reports.

Both of these companies are enjoying massive success with traditional consoles on the market, and Nintendo and Sony are both dependant on their consoles doing well for their overall health—and it seems like investors feel that something like Stadia puts traditional consoles, and thus the profitability of Sony and Nintendo, in jeopardy. Personally, I subscribe to the idea that the stock market, short-sighted and panicky as it is, is always a great indicator of the opposite of what will happen, which means we can safely assume that PlayStation and Nintendo are safe.

Or maybe I am wrong and Stadia will change everything—it’s certainly a hugely ambitious offering, after all, even if it is unclear whether or not it can deliver on said ambition.