I think that this analyst has failed to even look at software sales. First off, price cuts by MS and Sony have failed to even dint Wii sales. Second, the Wii already has 7 million+ selling titles, 5 of which are from Nintendo. Third, Nintendo is already one of the top companies for selling software. Except for a Madden release week, Nintendo has consistently been the top software company in N.America and absolutely dominates in Japan. Fourth, Nintendo is in a much better position than MS or Sony to cut console prices if sales falter...yet this analyst neglects to mention it.
Nintendo's stock price has only recently caught on to the fact that the DS is a phenomenal success...I believe it still has a lot of room to grow as profits from the Wii come in (especially with their bit hitters coming out...Metroid, Mario, Brawl, Kart). At the end when they claim that "Casual audiences won't make Wii the industry leader", it makes me question whether or not they know much about the video game industry.
@kspraydad, thanks for sharing this. This certainly does sound problematic for the stock as they do hit a point that many gamers have noticed. People buying the Wii get it mainly for Wii Sports. The stock price is not only forecasting the Wii to dominate in hardware sales, but that people will also buy Nintendo published software.
I don't agree that people get bored with Wii Sports that easily. If they did, they would not be trying it at a friends house and then getting a Wii for themselves.
On the other hand, many people did get the Wii soley for Wii sports. If they finally do get bored of Wii sports, then there is also no guarantee they will buy any additional games (rather than thinking of the Wii as a console, they are thinking of it as a Wii Sports Machine). They will no longer be recommending their friends to pick up a Wii for Wii sports as the novelty runs out.
Nintendo Co., projecting record earnings on sales of the Wii game console, may see its stock slide as Sony Corp. and Microsoft Corp. counter with price cuts and easy-to-play games.
The increasing competition signals a ``sell'' for Pelham Smithers, who last month became the second of 20 analysts tracked by Bloomberg to recommend investors dump shares of the Kyoto-based company.
To maintain its edge, Nintendo must hold the interest of customers who may have bought a Wii for the novelty of swinging the controller for tennis and baseball, Murakami said.
``It's easy to get bored with games like the hit title `Wii Sports' after just a few times,'' Murakami said. ``Whether Nintendo can continue to make games that sell well remains a question.''
I absolutely agree Powertrade, trading here has really helped me keep tabs on Nintendo and the video game industry as a whole. It's been an amazing performance with Nintendo going limit up yesterday and up another $2 today in such a bad market.
It's been my understanding that the markets have yet to factor in the Wii. Right now Nintendo's stock has hit record highs as the success of the DS has become apparent, but there is still a lot of room for it to grow as the Wii continues to sell out. Remember, Nintendo is a very successful software company as well and their 1st party titles almost always dominate on their platforms. I just wish I had the money to invest in it :(
Not too long ago they also announced a deal to introduce a wide range of merchandise to North America. Personally, I know that retail stores around here sell a ton of Nintendo-themed clothing when it comes in (specialty stores as well as places like Wal Mart) and if they advertise it properly, they could make a ton of revenue on quality licensed products. Japan-only products are very popular on ebay. Just something to consider.
@zukaus, hey I understand missing comments. I didn't even know you replied until I decided to post about how we are now north of $60. For me, this is one way the simExchange has made an impact in real life. If I hadn't looked at the portion of game sales that are going to Nintendo each month, I wouldn't have noticed how much this stock should be appreciating. Looking ahead on the game schedule and what we are forecasting here, it appears Nintendo will continue to dominate.
Hey I'm sorry I never responded to your earlier post asking about NTDOY. I must have missed it in all the Project Hammer/delisting talk. I'd just like to say I'm still bullish as ever on NTDOY and nothing in my opinion has really changed on the stock, even after today's big gains. If I ever go bearish on this stock I'll post about it but for now this I agree this is still one of the best ways to play in the video games industry. Congrats to all the other longs here. =)
@zukaus, what are your thoughts on Nintendo now that it's north of $52? I think the market is still underestimating the Wii (the simExchange is still the only indicator pointing to the Wii dominating this generation). However, we've seen about 25% return over the past 2 months and we're coming off of E3 (in which many people may buy on the hype and sell on the news). For me, this is still the only play in the video game industry.
I think it depends on the game. Things like strategy games or FPS' are naturally easier to control with something like a pointer (emulating a mouse for strategy and emulating a gun for FPS'), for something like action games or even fighting games I can definitely see your point and it wouldn't be good for all games, but for some it would work, an easy way to make a couple million for developers.
5
I think that this analyst has failed to even look at software sales.
First off, price cuts by MS and Sony have failed to even dint Wii sales.
Second, the Wii already has 7 million+ selling titles, 5 of which are from Nintendo.
Third, Nintendo is already one of the top companies for selling software. Except for a Madden release week, Nintendo has consistently been the top software company in N.America and absolutely dominates in Japan.
Fourth, Nintendo is in a much better position than MS or Sony to cut console prices if sales falter...yet this analyst neglects to mention it.
Nintendo's stock price has only recently caught on to the fact that the DS is a phenomenal success...I believe it still has a lot of room to grow as profits from the Wii come in (especially with their bit hitters coming out...Metroid, Mario, Brawl, Kart). At the end when they claim that "Casual audiences won't make Wii the industry leader", it makes me question whether or not they know much about the video game industry.