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Print 22 comment(s) - last by elpresidente20.. on Jul 20 at 2:31 AM

Nintendo continues to surprise analysts with the success of the Wii and DS game platforms

Nintendo recently overtook Sony in market share as the company became one of the 10 most valuable companies in Japan.  The Nintendo Wii continues to consistently outsell the PlayStation 3 in all markets, even though Sony has eight times more revenue power.  

"Nintendo's strength is its ability to create a new market," said Takeshi Koyama, Mizuho Securities Co. analyst.

Nintendo sold 338,000 Wii consoles on the U.S. market in May, compared to just 81,600 PlayStation 3 consoles sold by Sony.  Microsoft sold 154,900 game consoles in the same time period.  To help further boost U.S. sales in the future, Nintendo announced plans to relocate its U.S. marketing and public relations sector to Silicon Valley and New York.

So far this year, the Wii outsold the PS3 2 to 1 on the U.S. market and 3 to 1 in Japan, according to NPD and Enterbrain.

Sony hopes to boost PlayStation 3 interest by promising at least 380 new PS3 titles this fiscal year -- boosting the game catalog to at least 500 titles.  Along with the higher price tag than the Wii, a lack of appealing games is another reason cited for poor PS3 sales.

"We want to meet market expectations with expansion of our DS and Wii sales," said Ken Toyoda, Nintendo spokesman.

Joining the top 10 valuable lists catapults Nintendo into the ranks of companies such as Toyota, Honda and Canon.



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wont say i didnt saw this coming
By KiDDGuY on 6/26/07, Rating: 0
RE: wont say i didnt saw this coming
By Master Kenobi (blog) on 6/26/2007 8:05:40 AM , Rating: 2
It should be "Wont say We didn't see this coming ...."

In either case, Nintendo deserves every bit of this. They brought two products to market that sell like hotcakes. That is the goal of any prospective company. Sell products like hotcakes.


RE: wont say i didnt saw this coming
By Master Kenobi (blog) on 6/26/2007 8:05:40 AM , Rating: 2
It should be "Wont say We didn't see this coming ...."

In either case, Nintendo deserves every bit of this. They brought two products to market that sell like hotcakes. That is the goal of any prospective company. Sell products like hotcakes.


RE: wont say i didnt saw this coming
By KiDDGuY on 6/26/2007 8:13:11 AM , Rating: 3
hey I am no english man, but yeah i see the mistake i did there :D

PS3 will keep getting bashed till it gets some decent title releases ..., i mean take the example of Metal Gear Solid , it was *supposed* to be released this year in late september i think but was pushed back to Q1 2008.
And list of such examples continues .., Sony needs to rethink their business strategy *if* they r to even stand against these *hot cakes* from Nintendo


RE: wont say i didnt saw this coming
By elpresidente2075 on 6/26/2007 9:57:56 AM , Rating: 3
Even when they get those extra 380 games out, its still not going to be appealing to grandma. Lets face it, the simplicity and general ease of use of the controller, the clean and simple software interface, and the fun of swinging your arms around to play a videogame make it much more fun for people out of the normal videogame demographic. This is leading to a much larger number of people wanting to buy it rather than the PS3 or XBox.

Seriously, as well as the PS3 and XBox controllers are engineered, they're not something that most people are interested in. Sure, most gamers are interested in them, but that's quite a small demographic when you compare it to the near universal appeal of the Wii.

BTW, I don't own any of the three, but I've played all of them extensively. The PS3 is more of the same (albeit with much prettier graphics), the XBox is also, but since the Wii's gameplay is so much different than anything else before it, it is the most "fun" of all of them.


RE: wont say i didnt saw this coming
By Sparke on 6/26/2007 5:08:16 PM , Rating: 2
You bring valid points as far as extent of customer base that the Wii has. It remains to be seen, however, how often "grandma" will shell out $40-50 for games other than Wii Sports, which was free. Nintendo has also struggles, historically, with 3rd party developer support. They rely on their very successful but very old Mario and Zelda characters to sell. The Playstation franchise offers the most broad game library with strong 1st and 3rd party support while Microsoft has cemented itself with the Gen-X FPS and sports gamer crowds. Also, as far as forward-thinking goes, both MS and Sony obliterate Nintendo with their online functionality. MS is obviously king in that area but Sony is doing their best to catch up with the Home interface and consistent firware updates.


By SirLucius on 6/27/2007 9:15:36 AM , Rating: 2
It's interesting that you mention grandma. Just a few weeks ago there was a news segment on how a nursing home in the D.C. area was actually purchasing Wii's for residents to play since it was a way to exercise and have fun. Granted, they won't necessarily be buying the latest and greatest games Nintendo has to offer, but I'm sure games like Rayman and Mario Party have a high chance of finding their way into the nursing home's library.


By elpresidente2075 on 7/20/2007 2:31:58 AM , Rating: 2
Wow, three weeks later, and I realize what an idiot I look like with the title of my thread. Sorry, I meant to say I won't say I didn't see this coming.

lol


RE: wont say i didnt saw this coming
By Flunk on 6/26/2007 10:46:32 AM , Rating: 1
In proper English double negatives are not acceptable. It should be "I saw this coming".


By geddarkstorm on 6/26/2007 1:54:08 PM , Rating: 2
Only double negatives operating on the same object, as far as I know, are incorrect. "I didn't not walk the dogs" is wrong but "I never said I didn't walk the dogs" is absolutely correct.


RE: wont say i didnt saw this coming
By nayy on 6/26/2007 10:38:58 AM , Rating: 1
I never really understood the hotcakes analogy, do they really sell that well? I mean why not say, "sell like sodas" or "sell like WoW subscriptions"


Some other thoughts on this
By darkpaw on 6/26/2007 8:34:27 AM , Rating: 5
Keep in mind that Nintendo's market value was greater then all of Sony, not just their gaming divison. Monday Nintendo passed Sony briefly and then closed behind them again, did they close ahead of them on Tuesday?

Nintendo's Price-to-earnings ratio is also pretty high though, showing their stocks could be a bit overvalued atm. If they have any kind of negative news it'll take a huge hit. Still this is really great news for Nintentdo and quite a milestone.




RE: Some other thoughts on this
By nayy on 6/26/2007 10:18:03 AM , Rating: 4
I agree their stocks probably are a bit overvalued, but that just shows that investors trust that Nintendo will meet it's targets in the next couple years.
As you comment the stock it's a little volatile, but if nothing dramatic happens the stock is likely to continue growing in price.

I'm really happy for Nintendo, their innovation has really paid off, it's a perfect Case Study for the Blue Ocean Strategy. I really hope that MS and Sony find their own way to revolutionize the gaming expirience.


RE: Some other thoughts on this
By dagamer34 on 6/26/2007 11:42:01 AM , Rating: 2
Not really over-valued, but putting fuure value in Nintendo's stock. YOu'd rather do that now and hopefully they build more production facilities than wait a while.

Besides, we all know that the 2nd Christmas for a console is supposed to seal the deal. I don't even need to start naming games coming out between now and December. :D


Awkward comparison
By Griswold on 6/26/2007 8:47:57 AM , Rating: 3
I'm all for credit where credit is due, nintendo deserves it. And I'm not really a sony friend either, but comparing nintendo to sony as a whole is like comparing IBM and Intel (just an example) - just because both happen to be CPU manufacturers.




RE: Awkward comparison
By XesBOX on 6/27/2007 10:02:14 AM , Rating: 1
What? Are you retarded?

IBM doesn't manufacture CPU's..


RE: Awkward comparison
By throughhyperspace on 6/27/2007 11:34:32 AM , Rating: 2
Really?

You may want to do a little research on that. The Gamecube, Wii, PS3, and Xbox 360 all use CPUs developed by IBM. All Macs until recently had "IBM inside". AMD and IBM often work together on development.


RE: Awkward comparison
By odiHnaD on 6/27/2007 1:56:47 PM , Rating: 2
IBM even used to make x86 Procs back in the day (granted Cyrix processors sucked) and who do you think Fabs all those shiny new Cell processors in the PS3? (let me give you a hint, they're also known as "big blue")


How the hell is this news?
By afkrotch on 6/27/2007 4:40:17 AM , Rating: 2
Seriously, how the hell is this news? The PS3 and Wii aren't even targeted at the same market. Nintendo has said it constantly themselves. Just like how Microsoft doesn't even picture the Wii as competition. Simply cause they aren't.

The Wii definitely isn't a replacement for the Xbox 360 or PS3. It's a perfect complement.

Just like someone else also said, market value is not market share. Like how Apple has higher market value than Dell. The smaller a company, the more the company can grow. The more appealing it is to investors, raising it's market value.




RE: How the hell is this news?
By Samus on 6/27/2007 5:33:50 AM , Rating: 2
I agree dude, one console isn't taking sales from people who would buy the other one. I don't know anyone who owns a Wii and a PS3. We're talking entirely different experience.

Completely tired of hearing about this. Yay Nintendo, but move on.


Corrections
By deeznuts on 6/26/2007 1:30:01 PM , Rating: 3
I hate to be a grammar/english police as well, but first, Nintendo briefly overtook Sony in market capitalisation, not market share. That's different. Second, every news outlet that reported this reported that it was only brief, and Nintendo's share price retreated (after investors took their profits) and their market cap closed lower than Sony's (Haven't checked yesterday or today). Third, Sony most likely is more valuable than Nintendo by most other valuation mehtods. They have too much revenue, assets, and diverse revenue streams.

That said, Nintendo must be commended, they make a ton of profit on lower revenue, they have carved a nice niche.




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