PS3 responsible for Nintendo stock stagnation

by Andrew Yoon { Dec 13th 2007 at 12:00PM }

The Nintendo DS and Wii continue to print money, and the stock prices have demonstrated Nintendo's incredible success. Both systems continue to be top-sellers this holiday season, so why has the stock stagnated? The PS3, according to some financial analysts. "People's perception of the PS3 is improving from an underdog to something better, and part of the money that used to flow into Nintendo shares is now going to the Sony stock," said Yoshihisa Okamoto, fund manager at Mizuho Asset Management.

"The PS3 has been doing better recently. But that's partly because there are not enough Wii machines to go around in the United States and Europe," noted Rakuten Securities analyst Yasuo Imanaka in a report by Reuters.

It's interesting to see analysts finally turn around in their assessment of the PS3, no longer thinking it the underdog it appeared to be at the beginning of the year. With a strong lineup of games coming in 2008, PS3 has a strong chance to start chipping away at the lead that Microsoft and Nintendo have earned. Fanboy flame wars are going to get a lot more interesting next year.

[Via GameDaily]

Tags: analyst, nintendo, ps3, sales, stock, wii

Reader Comments (Page 1 of 1)

Brad @ Dec 13th 2007 12:07PM

its about time

sam-evans @ Dec 13th 2007 9:56PM

Its about time to turn up the heat in the Flame Wars?

Lets hope that PS3F is ready for a full M$ Troll invasion

eclipse27 @ Dec 13th 2007 12:39PM

cant wait for the Wii fad to finally die down...so Nintendo can STOP making consoles

Frank @ Dec 13th 2007 1:02PM

Way to be ignorant. Whats with all the hatred for nintendo? I can understand you not liking the wii, but how will them stop making consoles make you feel better?

ComicShaman @ Dec 13th 2007 12:54PM

I'm just not seeing the Wii "fad" going anywhere. I've heard too many people who have no interest in traditional gaming get excited about the Wii. Nintendo has made a very interesting move to expand their sales outside the normal gamer demographic.

Their challenge comes in follow-up. The non-gamer crowd won't buy Mario or Zelda or Metroid -- if they were interested in that stuff, they'd be gamers already. Putting Mario's face on a sports game may actually HURT sales with the Wii instead of help them, as has been the case in the past. I don't think their new audience will buy games with the same frequency as traditional gamers. So how do they keep working that market? It'll be a challenge.

Anyway, good to see the PS3 making its place in the world. For traditional gaming, the FPS fans have gotten their bonanza this year, and that has favored the X-Box. The next wave will probably be RPGs, and if Sony can excel there, I think the PS3 is in good shape.

Szu @ Dec 13th 2007 12:59PM

Well, when you're at the bottom of the barrel, the only place to go is up. Honestly, do these analysts have anything better to do with their time? Why don't they try playing some games? I partly blame them for the fact the games like Uncharted and R&C are bombing.

And another thing, why is the PS3 called the underdog? Sales-wise, that may seem like the case, but we've already had our underdog story for this generation. The Wii is the the underdog. I mean look at the size and power of the systems. The Wii is like David compared to Goliaths like PS3 and Xbox 360.

nihillasohen @ Dec 13th 2007 2:02PM

I really don't consider Uncharted to be bombing, If you go to the top ten list for PS3 games on amazon. There is only two new IP's on the list everything else are established franchises. Uncharted is #5.

Dahk @ Dec 13th 2007 2:41PM

Not really - several consoles were at the bottom of the barrel, and they've found a way to die off lol.

Furthermore, calling the Wii the underdog is like calling Lewis Hamilton (read his story if you don't know him) a rookie. Sure he is, but he blew away all the competition. It's this type of thinking that got Sony screwed up the first year.

Phantastica @ Dec 13th 2007 1:02PM

I'm sure it has nothing to do with the global pullback in stocks in almost all sectors since the beginning of November.

ejamer @ Dec 13th 2007 1:14PM

Without trying to sound skeptical, you don't suppose that a declining stock price could have anything to do with Nintendo's stocks being *drastically* overvalued? I can't imagine why people have continued to buy Nintendo stock given the ridiculous rates they have been trading for over the past 6 months... that level of growth simply isn't sustainable!

Of course that's much less newsworthy than claims that Sony is finally ready to crush their enemies, see Nintendo stock prices driven down, and hear the lamentation of the women.
;)

(Oh, and comments about the Wii being a fad are silly fanboy rhetoric. Appreciate the PS3 for its strengths, play whatever system you enjoy most, and grow some cojones so that you don't have to spew nonsensical garbage due to a deep-rooted fear of casual gaming.)

proArchy @ Dec 13th 2007 1:25PM

if Nintendo stopped making consoles i could get a zelda, mario, mariokart, or metroid sequel on a console that i bought to play more than just 4 games. honestly, i had a gamecube and in the years i owned it those were the only games i played on it. oh, killer7 too, so 5 games. i've already bought more than twice that many for my ps3, not to mention all the psn games and content i've downloaded. all i've been interested in on the Wii has actually been the same things, but its not worth shelling out $250 for 5 games.

Organic_Shadow @ Dec 13th 2007 1:34PM

I agree. And now it's getting $50 versions of games that are $40 on PS2 also? I have a PS2. Tell me why I should buy the waggle version for $10 more. When they start releasing awesome third party games for Wii that aren't just 'waggled' versions of existing games or series then my Wii will just have to keep collecting dust. I have never cared for the first party Nintendo mascot games, so save your breathe and don't even mention Mario, Zelda or Metroid. Umbrella Chronicles is the only thing I have been playing on my Wii at all, and since CoD4 I haven't picked it up. The whole time I was playing it I kept wishing it was a PS3/GunCon3 game instead anyway. Graphics are dated and the posterizing and bad lighting made it impossible to see ANYTHING at times. /rant

Anyway, you've got to be either a fanboy or just plain dumb to think that the ONLY reason PS3 is turning around is because of Wii being out of stock. Don't get me wrong, that's a good part of it....in Japan at least. But the bigger reasons I think are the games that have been coming out and the price drop. Then you have DMC4 turning out better on PS3 than 360, CoD4 being identical, Burnout Paradise identical... should I go on? Tides of change...

Frank @ Dec 13th 2007 1:28PM

I wouldn't really say PS3 is responsible for stagnant Nintendo stock....more of a

"Due to shortages of the Wii, Nintendo is responsible for Sony/Microsoft increased sales"

B1gC72 @ Dec 13th 2007 5:52PM

as a PSWii owner, i love seeing the PS3 do better and dont mind the Wii taking a little hit since it's still selling extremely well regardless. Sony has done a great job with this new stance they're taking, starting to look like Sony of old. its amazing what a little humble pie can do for you. cant get your ass whooped forever, gotta fight back sometime.

Mr Khan @ Dec 13th 2007 5:18PM

I just think its because Nintendo's unforeseen surge in stock prices had to end at some point or other, too much expansion is usually just a bubble forming

Their CONTINUED strong sales keep the bubble from bursting, but its not going to go on another meteoric rise

But PS3 is by no means the only reason to invest in Sony, a rise in Sony investment could come from any number of sources, even if the PS3 is stabilizing after a bad first year (which is due to a good ad campaign and a solid base of good 1st party titles)