The share buy backs simply allow Nintendo to be more at ease in calling all the shots without worrying about hostile takeovers, investor retaliation, etc.
No doubt they've heard of a guy named Carl Icahn who likes to sweep in, invest billions, profit from untimely share buybacks (which he pressures the board to do), and leave companies devastated in his wake -while he profits handsomely.
Much like EA profits from liquidizing game dev studios.
Nintendo IS hurting. They aren't going anywhere soon, but they are smarting from this generation console. They are erecting protective barriers now. Very smart.
Buying back the shares doesn't profit them financially until they sell them again. This is their second recent buy back and they are not doing it for money. It's for security.
This way they can still be allowed to take risks (necessary for any company worth existing) and not have to worry about short term knee-jerk reactions.
It's a reason to trust the company -even if they seem to be finding their way blindfolded (blue tinted of course)at the moment.
Thank you for illustrating the effects of share buybacks. The proxy war comment was there to suggest Nintendo having more leverage to pursue whichever strategy it saw fit. Of course, share repurchases will naturally drive up demand, and thus the share price.
My point-Nintendo holds their cards to their chest. It would be foolish to enter this meeting with specifics. Right now, the speculation is of a traditional sense-fitness, learning, Skylanders-type products, and so forth.
I would presume that there will be something dramatically different when speaking of QOL and 'health' in particular.
The share buybacks offer the security you suggest, through leverage, when these original concepts come out. I do not expect great reception at first.
