backtop


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.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

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


"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer

Related Articles













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki