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The Nintendo Wii standing tall  (Source: NOA)
Videogame maker Nintendo is now bigger than Honda Motor Company

The runaway successes of Nintendo, with its latest home console and handheld systems, have boosted the videogame maker to become Japan’s fifth largest company by market value.

Nintendo’s market value stood on Thursday at 8.69 trillion yen ($72 billion), making it bigger than even the NTT telephone company and Honda Motor, according to Reuters.

In late June, Nintendo overtook Sony in market share as the company became one of the 10 most valuable companies in Japan.

Upon the report of the company’s earnings on Wednesday, stock of Nintendo rose 3.5 percent, followed on Thursday by another 8.1 percent climb to 614,000 yen.

Both the Nintendo Wii and DS Lite remain hot sellers despite the length of time since launch. NPD Group numbers that track the sales of all videogame consoles consistently show both Nintendo products at the top of the charts.

Last month, the Nintendo DS was the highest selling videogames machine with 561,900 units sold. The Wii followed closely behind with 381,800 units, making it the best-selling home console for the month.

With no dip in demand in sight, Nintendo is boosting its sales forecasts for the current business year. It intends to sell 16.5 million Wii consoles this year, while also moving 26 million DS Lite units. Both numbers represent an 18 percent boost over previous expectations.

Nintendo also raised its operating profit forecast by 37 percent to 370 billion yen ($3.1 billion) for the fiscal year.



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The really interesting thing
By Griswold on 7/27/2007 9:20:55 AM , Rating: 2
... will be to see if they can keep it up or drop the ball again like they did in the past on more than one occasion.

Their presentation at the E3 wasnt really a storm of innovations compared to recent history with the Wii - the international press coverage reflected that as well.




RE: The really interesting thing
By elmikethemike on 7/27/07, Rating: 0
RE: The really interesting thing
By FITCamaro on 7/27/2007 9:47:41 AM , Rating: 1
I dunno about that. I'm a huge Star Wars fan but just because I can use the Wii controller as a lightsaber doesn't mean I'm going to go out and buy a Wii. Now if I already own one if such a game comes out, I'd buy it.


RE: The really interesting thing
By Zirconium on 7/27/2007 10:38:15 AM , Rating: 5
I dunno why people confuse themselves with trends. Sure, you won't go out and buy a Wii if a Star Wars game comes out, but that doesn't mean other people will follow along. It has been shown time and time again that there are people who do buy a video game system because one game comes out for it that they want to play. The first example that comes to mind is Blue Dragon for the XBox 360 in Japan. There are tons of others; people who bought XBoxes for the Halos, Playstations for Final Fantasies, Nintendos for the Zelda games.


RE: The really interesting thing
By omnicronx on 7/27/2007 12:30:51 PM , Rating: 1
haha so funny people rated him down because he made fun of star wars. I guess you underestimated the amount of in the closet star wars fans haha.


RE: The really interesting thing
By Pezman37 on 7/27/2007 5:10:14 PM , Rating: 2
I don't know how you can call yourself a star wars fan and not a buy a wii after getting to fight one to one with a lightsaber. I asked around my local game shop and about a dozen people said that was reason enough.

I think more innovation will come via various wii-mote connections. I thought the new gun was a nice new spin on an old thing, and they know now that neat new stuff makes money.


RE: The really interesting thing
By S3anister on 7/27/2007 5:57:24 PM , Rating: 2
HARRY POTTER. For those of us who like the series, the EA video showing a few kids playing harry potter with the wiimote is pure genius, using the 'mote as a wand is incredible!


By theapparition on 7/30/2007 8:05:05 AM , Rating: 3
Maybe the Harry Potter crowd can use their wands to figure out how to get a date.


RE: The really interesting thing
By therealnickdanger on 7/27/2007 9:34:09 AM , Rating: 2
Nintendo has never been anything but profitable, it's the only thing they do better than making games. What in their great history is considered "dropping the ball"? Power Glove? Virtual Boy? The N64 and GC may not have been #1 sellers, but they were always profitable.


RE: The really interesting thing
By omnicronx on 7/27/07, Rating: 0
By Rookierookie on 7/27/2007 10:09:20 AM , Rating: 2
Struggle, when you have an absolute monopoly over the handheld market? That's really stretching it a little.

And the Gamecube isn't so much a failure in Japan.


RE: The really interesting thing
By Whiskyboy on 7/27/2007 11:17:00 AM , Rating: 4
There are few problems with your statement:

First - Nintendo's sales of the GC were disappointing, but they weren't selling the console at a loss like their competitors so profitability was never a problem.

Second - The "Struggle" you talk about was probably what you read about. The PS2 did trounce the GC at 120 million units, but the GC only lagged 3 million units behind the Xbox - which was not considered a failure - but was solid at a PROFIT rather than a LOSS.

Third - Every iteration of the Gameboy, including the GBA/GBA SP, has trounced the competition. To be more specific, the GBA is the best selling handhold console of all time at 80 million units and the third best selling console of all time.

Your concept of struggle must mean "not enough GTA games".


Hm...
By StillPimpin on 7/27/2007 9:38:46 AM , Rating: 4
Nindendo is #5, great! But who's 1-4?




RE: Hm...
By webdawg77 on 7/27/2007 9:48:50 AM , Rating: 2
I'm sure that Toyota is one of those. I wouldn't be surprised if Mitsubishi or Tokyo Denki was also up there.


RE: Hm...
By MADAOO7 on 7/27/2007 12:23:11 PM , Rating: 1
Mitsubishi would definitely not be one of them. They have been on the verge of bankruptcy twice in the last few years due to poor automotive sales. You'd think Sony would be up there. Even with their Playstation division losing money, they are pretty well diversified across many electronic divisions that do make money.


RE: Hm...
By Scrogneugneu on 7/27/2007 3:35:17 PM , Rating: 1
Yeah, like the laptop batteries division.


RE: Hm...
By animedude on 7/27/2007 1:48:30 PM , Rating: 2
Toyota is by far the largest Japanese company. Then followed by the 3 banking conglomerates: Mitsubishi UFJ, Mizuho, and Sumitomo Mitsui. What is interesting is that Nintendo was ranked #695 last year (according to forbes).


RE: Hm...
By headbox on 7/29/2007 11:53:44 PM , Rating: 2
I'm shocked that they surpass Honda. It takes a lot of Wii and DS systems to equal the price of a car.


RE: Hm...
By Oregonian2 on 7/30/2007 3:01:57 PM , Rating: 2
Remember that taking "size" by market cap isn't basing size on how big they are NOW. Market prices (and therefore marketcap) is based upon expectations of the future and why stocks (market cap) can drop even if their sales (real size) goes up significantly.


wooly smokes
By blackseed on 7/27/2007 9:26:57 AM , Rating: 2
Surpassed Honda Motors? Consoles do make money!...(with exceptions I guess)




RE: wooly smokes
By mdogs444 on 7/27/2007 9:33:14 AM , Rating: 2
They are not just a console maker...

They are also majority owners of the Seattle Mariners (how else do you think they got Ichiro?), as well as the owners of Pokemon.


RE: wooly smokes
By StillPimpin on 7/27/2007 9:36:04 AM , Rating: 2
But not nearly as much as games. You have to remember, Nintendo is the biggest supporter of their consoles. So when they make a game and it does well, like all of their recent releases for the Wii, they make even more money because it all comes back to Nintendo.

Of course that excludes second party games, but I wasn't talking about those anyway.


RE: wooly smokes
By Netscorer on 7/27/07, Rating: 0
Deservedly so.
By therealnickdanger on 7/27/2007 9:14:52 AM , Rating: 1
Way to go, Big N!




RE: Deservedly so.
By DonkeyRhubarb on 7/27/2007 10:32:00 AM , Rating: 2
I wonder what slice Reggie gets out of all this???


RE: Deservedly so.
By Yongsta on 7/28/2007 5:56:30 PM , Rating: 2
Not much probably. Reggie is the COO of Nintendo of America, Itawa is the head honcho.


meh
By shamgar03 on 7/27/2007 9:57:09 AM , Rating: 2
While this is big for the industry, it isn't not that big for Nintendo. Console companies have to perform the equivalent of vine swinging. Every 3-4 years they either continue to make money or suddenly drop off the chart (unlike car companies which I would say are relatively safe by comparison). We have already seen that having a big company behind a console means nothing, so Nintendo wins this round, but can they being out another console that sells this well?




RE: meh
By StillPimpin on 7/27/2007 11:36:32 AM , Rating: 2
Absolutely! As of now, the next next-gen war is Nintendo's to loose. Yeah that's a pretty big statement I know but, Lets look at a few things.

First of all, the Wii is selling extremely well right now and I don't see a significant slow down coming until maybe 2009. Some would make the argument that it is selling to little kids and grandparents. Not so where I live. I can walk into any gaming store any time of the day or week and there will be at least one "core" gamer asking if there are anymore Wii's in stock. And the usual reply is, "man you should be here when we get our next delivery, because if your not, we'll be sold out within 20 min." So it's doing well with core gamers.

Second is their games library. If you look at any games sales chart, about half of the top 10 selling games will be for a Nintendo platform. Game developers notice these things. So what will happen, more developers will jump on the Wii bandwagon because they know that it is a viable platform that people buy games for. this increases the games library and makes the system even more attractive.

Third, the Wiimote. If you haven't used it yet, go to a friend’s house and play at lease one game. If you have used the Wiimote... Nuff said.

So here is Nintendo's formula for continued domination of the current and next-gen console wars:

Improved Wiimote functionality/accessories + HD game play - HD movie capability + continually increasing games library + continued low pricing = WORLD DOMINATION!!!


RE: meh
By StillPimpin on 7/27/2007 11:36:32 AM , Rating: 1
Absolutely! As of now, the next next-gen war is Nintendo's to loose. Yeah that's a pretty big statement I know but, Lets look at a few things.

First of all, the Wii is selling extremely well right now and I don't see a significant slow down coming until maybe 2009. Some would make the argument that it is selling to little kids and grandparents. Not so where I live. I can walk into any gaming store any time of the day or week and there will be at least one "core" gamer asking if there are anymore Wii's in stock. And the usual reply is, "man you should be here when we get our next delivery, because if your not, we'll be sold out within 20 min." So it's doing well with core gamers.

Second is their games library. If you look at any games sales chart, about half of the top 10 selling games will be for a Nintendo platform. Game developers notice these things. So what will happen, more developers will jump on the Wii bandwagon because they know that it is a viable platform that people buy games for. this increases the games library and makes the system even more attractive.

Third, the Wiimote. If you haven't used it yet, go to a friend’s house and play at lease one game. If you have used the Wiimote... Nuff said.

So here is Nintendo's formula for continued domination of the current and next-gen console wars:

Improved Wiimote functionality/accessories + HD game play - HD movie capability + continually increasing games library + continued low pricing = WORLD DOMINATION!!!


Special thanks from Nintendo
By FS on 7/27/2007 12:10:30 PM , Rating: 4
to: Sony and MS
for: making relatively expensive consoles and increasing the sales of our products indirectly.
result: our revenue&profit is what it could not have been without you guys.

/end




The Big 'N' for the Win
By phatboye on 7/27/2007 9:39:02 AM , Rating: 2
I predicted great success for the Wii way before its release due to its relatively low cost of ownership compared to the competitors, but wow, who would have every thought The Big 'N' would do this great.

I don't the other two took Nintendo seriously enough but hopefully this will knock some sense into them, LOWER YOUR DAMN PRICES NOW MS AND SONY OR CONTINUE TO BE DOMINATED BY THE WII.

P.S. ...and no Sony that temporary joke of a price drop for the PS3 isn't enough.




RE: The Big 'N' for the Win
By tfranzese on 7/27/2007 12:32:18 PM , Rating: 1
I'd say your prediciton was wrong. Nintendo isn't selling so well because of the low price alone, but more importantly because of their broadened audience which you seem to heavily disregard. Price helps, but considering you can get an 360 for little more (talking casuals here) I think you're missing the mark. I also feel that the Wii's control scheme helps it's sales as it's very appealing and has a lot of great potential.


Not Sure About the Title...
By Carl B on 7/27/2007 9:59:06 AM , Rating: 3
Normally "size" is used to refer to revenues, not market cap. One could say that Nintendo is the fift "most valuable" company in Japan, but certainly not that they are the fifth-largest company in Japan - which is again revenue-dictated.




Size is the matter
By nvalue on 7/28/2007 12:45:27 AM , Rating: 3
Maybe it is not scientific reason, people especially for girls, housewives and office lady all they love the Nintendo Wii because its size is small and shiny white in color, they will persuade/advise/decide/order their boy friends, honeys, kids or simply themselves to choose Wii instead of PS3 or XBOX. Microsoft and Sony have to learn from Nintendo to design a smaller/lighter/elegant consoles. NDS lite is a good example of how Nintendo overcomes the powerful PSP.




wow
By jedisoulfly on 7/27/2007 2:25:00 PM , Rating: 2
thats suprising. maybe my mom will stop calling them entendo




Can anyone say...
By grenableu on 8/23/2007 9:55:11 AM , Rating: 2
stock price bubble?




"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference

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