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Nintendo's Market Value Briefly Tops Sony's 137

Posted by Zonk
from the ballet-of-the-titans dept.
GameDaily reports on news from Reuters; today for the first time Nintendo outpaced Sony's market value. Note that this isn't Sony's games wing, but the entirety of the Sony corporation. Investor confidence spurred by brisk sales of the DS and Wii pushed Nintendo (briefly) into the top ten earners in the nation of Japan, with such rarefied organizations as Honda, Toyota, and Canon. "Nintendo's shares rose to a record high 46,350 yen in the morning, increasing its overall market value to 6.57 trillion yen ($53 billion), which allowed it to surpass Sony's market capitalization for a time. The company's shares, however, finished the day a bit lower putting Nintendo back in 11th place behind Sony, but still ahead of Panasonic maker Matsushita, whose sales are over eight times larger than Nintendo's. Nintendo's market value closed at 6.39 trillion yen on Monday, just below Sony's 6.48 trillion yen."
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Nintendo's Market Value Briefly Tops Sony's

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  • Especially since I bought Nintendo stock when I saw Sony repeatedly shooting itself in the foot.
    • Bah, would that I had had the money to invest in Nintendo a year ago, when I very much wanted to.
    • In the US, the stock is traded as NTDOY (on Yahoo, it's NTDOY.PK http://finance.yahoo.com/q?s=NTDOY.PK [yahoo.com]). It's on the "Pink Sheets http://www.pinksheets.com/about/index.jsp [pinksheets.com]," as an OTC (over-the-counter) traded stock.

      NTDOY stock represents 1/8 of a share of Nintendo stock traded on the Tokyo stock exchange, NTDOF represents one share. Most people trade the NTDOY, which is currently trading at 45.85.
  • in the old nugget:
    1. Buy Nintendo stock
    2. ???
    3. Profit!
  • by Volante3192 (953645) on Monday June 25, 2007 @04:45PM (#19640595)
    and do it WELL. Just seems to me to be a better business model than to try to do everything and not be able to focus on anything.

    Course, I'm a Ninty fanboy, so I'm slightly biased...
    • Re: (Score:1, Offtopic)

      by UbuntuDupe (970646) *
      Yeah, well, wasn't that GMC's slogan? Apparently, they take "one thing" to mean "make cars and run the world's largest health insurance plan". Go fig.
      • Well, I'd argue they didn't exactly adhere to the "well" part... But that's a whole nother debate, one I'd probably lose simply for lack of an knowledge on the topic.
        • by ceoyoyo (59147) on Monday June 25, 2007 @06:46PM (#19642457)
          Nonsense. GM runs a really good loan business. They just have to work out how to make their loss leaders (cars) a bit more efficiently.
          • GM runs a really good loan business.

            GMAC [wikipedia.org] is no longer a subsidiary of GM. It was sold to a private equity firm, and GM only has a minority stake in it.
            • by ceoyoyo (59147)
              They sold their most profitable division? Crazy. I guess they wanted to concentrate on their core competency... losing money.
        • Well, I'd argue they didn't exactly adhere to the "well" part... But that's a whole nother debate, one I'd probably lose simply for lack of an knowledge on the topic.

          I think it's a good point though. GMC really didn't do the car making part "well" anymore. They've been catch up with the Japanese and the Europeans in the "Quality" department for decades now. American cars are boring, uncool, have a reputation for not lasting.

          The first thing I notice when I sit down in a car is the console. I want a conso
          • by Grave (8234)
            GMC is a division of GM, not GM itself. GMC sells more trucks than any non-American brand. They might not have had the greatest interiors until recently, but their trucks are very reliable and capable. When it comes to trucks, those things matter far more than a stylish interior (which GM as a whole has been making huge strides in). So I'd say GMC's slogan is fairly accurate.
      • by aliquis (678370)
        That's ok because in Nintendos case they do consoles, games and pokémon (games, consoles, toys, furry animals, series, movies, ...)
  • Time to short? (Score:3, Insightful)

    by jandrese (485) <kensama@vt.edu> on Monday June 25, 2007 @04:47PM (#19640617) Homepage Journal
    Sounds to me like Nintendo might be a bit overvalued. The Wii is great, but the games have just been trickling out for it and people are going to lose some of their enthusiasm for the system before too long. I'm not an investor, but I can't see how they can maintain that sort of overinflated valuation for too long.
    • Re:Time to short? (Score:5, Insightful)

      by Altus (1034) on Monday June 25, 2007 @04:53PM (#19640709) Homepage

      yes, games have been few and far between for the Wii, but the console has sold like hotcakes. This implies that games will be released for it in the future.

      A lot of game development companies bet against the Wii and that was a poor bet for them to make. I'm sure many of them would like to go back and release on the Wii just to get a crack at the installed base. I doubt they will make the same mistake now that the Wii is on the market and outselling the other consoles.

      That said, Nintendo is probably close to the peak of its value and would not make a fantastic investment right now. Even if the console continues to sell well and the new games come out and Nintendo is fantastically successful, how much higher can the stock reasonably go?
      • Re: (Score:1, Insightful)

        by Anonymous Coward
        "how much higher can the stock reasonably go?"

        no need for reason. this is the stockmarket, after all.
      • how much higher can the stock reasonably go?


        I don't know, that sounds like one of those statements that come back to bite you in the ass :P
    • Re: (Score:3, Insightful)

      by suv4x4 (956391)
      Sounds to me like Nintendo might be a bit overvalued. The Wii is great, but the games have just been trickling out for it and people are going to lose some of their enthusiasm for the system before too long. I'm not an investor, but I can't see how they can maintain that sort of overinflated valuation for too long.

      The funny thing is, they've survived thus far on classics such as mario, zelda and so on. Why would you think they suddenly need a river of games to keep gamers interested.

      It's not about quantity
    • Re:Time to short? (Score:5, Informative)

      by DaAdder (124139) on Monday June 25, 2007 @05:10PM (#19640947) Homepage
      Games have been trickling out since most of the game producers are of the wait-and-see variety.

      The Wii's success was soon evident to everyone though and most of the large game makers jumped on the bandwageon. However since games aren't produced in an instant, you'll see an avalanche of games released for the Wii, starting late '07, but mostly throughout, and towards the end of, '08.

      News is surfacing that some companies are shifting focus from Sony to Nintendo entirely:
      http://kotaku.com/gaming/the-tide/big-japanese-pub lishers-shift-from-sony-to-nintendo-271785.php [kotaku.com]

      My guess is that this'll keep happening unless/until the PS3 somehow manages to pick it sales up significantly and reach some form of critical mass.
    • by Chris Burke (6130)
      I agree that Nintendo is probably overvalued, but I don't think it's because of the games. Yes the games are just trickling out, but that's fairly normal in the first year of a console's life, and we know that a lot of studios were caught off guard by the Wii's success at launch and thus will be late bringing games to the Wii. The time to worry about a lack of games will be Christmas, when having the AAA titles out will be important.

      The reason I think N is probably overvalued is simply because the company
      • by catprog (849688)
        The thing is while Sony's revenue is much higher they make very little profit of that.

        Nintendo make more profit for the same amount of revenue

    • All the other consoles are making a loss with each sale. The Wii makes Nintendo a profit with each sale. That profit can be invested in Nintendo's own development of games which are usually very good games.

      Sony will lose even more money once they lower the very high price of a PS3.
    • IMHO, they're not overvalued enough to justify much of a fall in stock price, if any at all. The DS is one of the most successful gaming systems of all time and the Wii is looking to do just as well. The DS had a rough time just after its launch with a lack of games as well. So while I think Nintendo is overvalued for now, I think that it's just a waiting game at this point, with more AAA titles from Nintendo and developer support ramping up.
    • Re: (Score:3, Interesting)

      I always scratch my head when people say "where are the games?"

      Number of Games released in 2007 according to Gamerankings:

      360: 53
      PS2: 45
      PSP: 44
      DS: 35
      Wii: 26
      PS3: 17

      Now, as previous people have said, systems typically have a game drought right after launch. Wii and DS are also in a funny position where they tend to get more exclusives but fewer ports due to their unique controls and crap (the big reason why PSP consistently has more releases than DS). Fact is, despite being fresh off launch, Wii is already
    • by ozphx (1061292)
      At the moment its valued more than the combined might of all of Sony. That includes Sony-BMG etc.

      I find that amazing. I'm honestly surprised that the word Sony isnt worth more than all of Ninty ;)

      I like the Wii and all, but Sony is a great big bloody monolith (like the ps3, heh)
    • by LKM (227954)
      I agree that Nintendo is overvalued, but not for the reasons you state. Nintendo will soon come out with Wii Sports follow ups like Wii Music and Wii Fitness. That will give them yet another boost - not to mention their "hardcore market" fanservices like the new Mario or the new Metroid games. I have little doubt that the Wii will be the dominant console this generation, just like the DS dominates the portable market. Personally, I think that within five years, Nintendo will have sold as many Wiis as 360s a
    • by Atzanteol (99067)
      But the Wii is outselling the PS3 bigtime [dailytech.com].
  • Unless either company decides to buy all its stock back or liquidate itself in the time period of three seconds... why does this matter?
    • Re: (Score:2, Insightful)

      by sssssss27 (1117705)
      I think it more or less just puts into perspective how well Nintendo is doing and how poorly Sony is doing. People aren't going to invest in a company that they don't have faith in.
      • by xero314 (722674)

        People aren't going to invest in a company that they don't have faith in.

        I know I wouldn't invest in a company that was ranked 164th in last years fortune 2000 and happened to drop out of the top 10 market value in japan for mere moments. I would much rather invest in a company that was ranked 695th (down 75 from the previous year) in fortune and broke the top 10 market value in japan but couldn't maintain the rank through market closing.

        Seriously I'm not knocking Nintendo, but to imply that investors are going to lose faith in Sony is foolish.

        • I apologize. I didn't mean to say that people are going to lose faith in Sony just that stocks are a good way of telling how people feel about particular companies. It won't give you a long term picture of the way people feel about the company but more of a day to day reflection.
          • by joggle (594025)
            Yes, it's true that a stock value only shows the current perception of a company's worth, not its long-term value. However, it is significant IMO that Nintendo is currently considered to be roughly worth the same as all of Sony which, by any measure, is a much larger company. Way to go Nintendo!
            • by ceoyoyo (59147)
              The stock value is a prediction of the long term value of a company. So Nintendo having a market cap close to or the same as Sony even though it's a smaller company in every other way means that investors expect it's long term value to be similar to Sony's.
    • It matters because it highlights how well Nintendo is doing compared to Sony, two companies from the same region dealing with gamers. Sony is a huge company with multiple divisions as large as their gaming division. Nintendo, which just does games, briefly surpassing Sony outlines that a lot of investors believe Nintendo to be a better company (considering how the Wii and DS are making money hand over fist, I'd have to agree with them).
  • by cromar (1103585)
    'Nuf said.
  • Nintendo stock is grossly overvalued right now. Good time to short it (unless of course, you happen to think that the Wii will singlehandedly replace all stereo, television, computer equipment, and all other consumer electronic on the planet, as opposed to simply being a fad game system). At a P/E of 53.78 there are a lot of really, really stupid people pretending to be investors out there.
  • by miller60 (554835) on Monday June 25, 2007 @05:12PM (#19640969) Homepage
    Here in NJ there are still console shoppers staking local game stores for new arrivals of the Wii. I was just at a local gaming store, and in the 10 minutes I was there, two shoppers came in and asked "if they had any in yet." No such luck. No inventory shortages for the PS3, tho.
  • by StikyPad (445176) on Monday June 25, 2007 @05:40PM (#19641405) Homepage
    A) Sorry, with a P/E of 31 (in times of plenty), this is a good example of an overinflated stock with unsustainable growth. (Sony's P/E is also high at 54 since investors are betting the PS3 will take off at some point -- I think they're right, but I still don't think it's a good buy.)

    B) If Nintendo doesn't either start putting out some quality titles, or convincing third parties to do it for them, the Wii excitement will quickly turn to Wiimorse. I really *want* to like this console, but I haven't found a game yet that holds my attention, or my son's, with the exception of Paper Mario, and the caveat that it was too difficult for him, and too easy/tedious for anyone with a little Mario experience under their belt. And why it doesn't support either the "classic controller" (when holding the Wiimote sideways is anything but ergonomic) or motion sensing (when that's the main selling point of the console) is beyond me. Anyway, yeah. More and better games -- and soon!
    • by Chris Burke (6130)
      A) Wow! Okay, I was looking for N's p/e ratio but didn't find it. While 31 is pretty high, I had assumed it would be higher that Sony's simply due to Sony being a much larger company with more revenue streams. That's not a good thing for Sony. I think both are headed for some stock readjustment.

      B) Not a big deal until Christmas, at least as far as N's prospects, revunues and share price are concerned. Personally I'm struggling to find enough time to play the games I have (Zelda, Trauma Center, Godfather
      • Also since it can play gamecube games for the people who already haven't owned a gamecube, and I guess that are plenty, there are quite a few titles for the gamecube out there aswell. Some RPGs (Baten Kaitos, err.. damn I suck at names :D, oh well, there are a few which seems nice anyway), both metroids, smash football, paper mario thousand years door, uhm, and probably more ;/.

        Thought I guess the best consoles to own right now is the PS2 and the DS since both are cheaps and have lots of games. Personally I
    • by Kaenneth (82978)
      I'd rather have $250 in remorse than $700...

      • by ivan256 (17499)
        Want people to take your post seriously instead of assuming you're a fanboy? Well then don't arbitrarily add $100 to the price of the thing you're biased against.
        • by tepples (727027)

          don't arbitrarily add $100 to the price of the thing you're biased against.

          As far as I know, PLAYSTATION 3 does not come with a game. My Wii came with five.

          • by ivan256 (17499)
            If each of the games in Wii Sports counts as a game, then there are plenty of demos on the Playstation network for free download that would count equally. Either way, if assigning the value "$100" to Wii Sports isn't arbitrary I don't know what is.
            • by trdrstv (986999)

              If each of the games in Wii Sports counts as a game, then there are plenty of demos on the Playstation network for free download that would count equally. Either way, if assigning the value "$100" to Wii Sports isn't arbitrary I don't know what is.

              I don't think the value of $100 is for WiiSports (If so, that is unreasonable). It is for a PS3 game ($60) since it doesn't have one bundled. That leaves $40 USD unaccounted for, and since they didn't round up for the Wii, I'll assume they didn't add VAT, or T

              • by ivan256 (17499)
                It seems like people are going to great lengths to explain his clearly arbitrary price discrepancy. The cable? Give me a break. The PS3 is the only console I can think of since the 8-bit days that actually takes a standard video cable. You don't need any special Sony cable. Just a $4 HDMI cable [monoprice.com] does the trick.

                Disclaimer: I own both a Wii and a PS3, and I have $0 of buyers remorse. Though given the fact that I've been playing mostly PS2 games lately due to the lack of quality new releases for both systems, p
        • by CastrTroy (595695)
          Maybe he's adding in the cost of a game. The Wii already comes with one. So the games don't quite cost $100, but it'll bring the price close to $700 than it is to $600.
    • Re: (Score:3, Interesting)

      A) Definately. It's absolutely incredible that a specialized business was able to overtake a multifaceted mega-giant, even for a moment. That said, this is probably the worst time to be investing in Nintendo stock. The Wii can be a wild success and dominate the generation and the stock still might recess down to a more sane level. If you didn't jump on the boat before the launch, it's a bad idea to hop on now. It might still go up, but it'll be amazing if it doesn't come down.

      B) Assuming Metroid Prime: Corr
    • by aliquis (678370)
      2) So buy gamecube games, they use the gamecube controller which is very convenient and there probably exist plenty of games which your son can handle.
    • If Nintendo doesn't either start putting out some quality titles, or convincing third parties to do it for them, the Wii excitement will quickly turn to Wiimorse. I really *want* to like this console, but I haven't found a game yet that holds my attention

      But people didn't buy the Wii for "games that hold their attention" such as Zelda or Super Paper Mario. They bought Wiis for Wii Sports. Nintendo doesn't actually need "hardcore" games (although a few are coming out). What they need is a few strong follow-ups for Wii Sports. And they have these, too - Wii Fitness and Wii Music are looking extremely interesting.

    • I don't know why you are so down on their P/E ratio. it just means investors expect their profits to go up, which in this case is reasonable. Their P/E ratio in November was around 40, so it is actually adjusting by increasing profits. This is still a good buy.
    • The Wii isn't marketed to the hardcore gamer like the PS3 and XBox360 are. I know people who got their console last year and are still happy playing the Wii Sports game that came with it.

      The thing that will kill Wii sales the quickest are too many crappy games. If Nintendo promised 380 games this year, I'd sell my stocks as fast as I could. If you want to know why, look up what caused the great video game crash of the 1980's (it wasn't just ET ;)).

      Even if only 1 or 2 good games come out a year for the W

  • When having friends over, playing Playstation is fun and geeky. When having friends over, playing Wii is light-hearted and social. I got a Wii so my non-gamer friends can play along instead than getting their butts handed to them in Tekken round after round.
  • by Drake42 (4074) * on Monday June 25, 2007 @06:44PM (#19642425) Homepage
    I'm not employed by any game company. If I had any financial motivation it would be toward MS winning since I can code games on their console using their open dev tools.

    That said, the Wii kicks and continues to kick everyone else's ass. Last night after playing so much golden axe and boxing that I couldn't stand it any more I decided "Hey I want to see some better graphics" I loaded up my 360, looked at the games I had available and none of them sounded all that appealing. I tried "Small Arms" and it just didn't look so amazing that it was more fun to play. Same with PocketBike. Considered loading up Dead Rising but didn't want to invest the time. Nothing else grabbed me so I went right back to the Wii for a few more rounds of tennis and went to bed.

    Like it or Hate it, the Wii has more staying power than any of the other consoles, graphics or not. You can say that Nintendo stock is over priced if you want, but people said that about google for ages and then their stock price rose anyway.

    People are fundamentally fed up with products that don't work / don't do what they claim / are so over-hyped that I have to tune them out just to think. The people of the world want simple services that actually and reliably work. Google and Nintendo are delivering that and so the market is rewarding them and will continue to do so for quite some time. I'm betting that I'll have a lot more fun playing Smash Brothers with my friends than playing Halo with whiny ass, vomit talking, on-line clans.

    I love my 360. And someday I'll buy a (lower cost) PS3 just for the eye candy. But when I want to play a game, I keep on going back to the Wii even after having it for quite a while.

    • by Megane (129182)

      If I had any financial motivation it would be toward MS winning since I can code games on their console using their open dev tools.

      Wow, where did you get that definition of "open" from? From Ebay, where "mint" is a flavor?

      You have to pay $99 a year, can't share with other people who don't also pay $99 a year, the tools themselves are certainly not open source, and no gnu-ware tools.

      • by Turey (1030434)
        I believe the concept you're failing to grasp is that of "relative". Show me where you can get a Wii or PS3 Dev kit for under $99 on the open market.
        • Ahem. [playstation.com]

          All the Linux you can handle, and even without the GPU it's more power than you'll ever need for a homebrew game. If you're a small developer, the Wii devkits are fairly cheap ($5000 or so, but I'm probably wrong here).
    • Re: (Score:2, Informative)

      I agree, that is why I have a Wii and a PC. When I want to game, and not waste my life tuning settings, I play Wii. When I want the best graphics possible I use my PC. The Xbox and the PS3 both feel like PC's I'm not allowed to tune to my liking, and for that I would only buy them if they had some GREAT games for them, which eventually they will, but as you said, nothing is grabbing me now so I play Resident Evil 4 on the Wii and am more pleased with it than everything but God of War II.
      • So you don't want to waste your life tuning settings (which really means that your game's performance is not satisfactory and you have to fiddle around with the settings, defrag your hard-disk and update your drivers), but you don't like it that the PS3 and 360 don't allow you to tune settings (which is of course completely unnecessary with consoles)?

        The fact that you don't need to spend hours tweaking settings on a 360 is a good thing.
    • Like it or Hate it, the Wii has more staying power than any of the other consoles, graphics or not.

      I'd appreciate it if you didn't present completely subjective opinions as hard fact. I'm buying a 360 next week because it has tons of released and upcoming games that interest me. The Wii has exactly one (Metroid Prime 3), so the Wii really doesn't interest me and neither does its controller.

      I love my 360. And someday I'll buy a (lower cost) PS3 just for the eye candy. But when I want to play a game, I keep o

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