GamerNode: News - Stocks: "Sell Nintendo. Buy Sony/Microsoft"

Stocks: "Sell Nintendo. Buy Sony/Microsoft"

Category: Industry / Multiplatform, Posted: 08/30/2007 at 05:13AM EDT by Andy Groen, Contributor

Wallstreet Bloomberg is reporting some somewhat bizarre stock related gaming news today. As stock in Microsoft and Sony starts to rise, it seems that the exact opposite is happening to Nintendo. Against all logic and reason, their stock is falling. A majority of investment firms are listing Nintendo as "Sell" and Sony/Microsoft as "Buy."

The general consensus around the stock scene is that Sony and Microsoft will begin to take back market share as they counter the Wii this holiday season. Stock analysts are saying that the efforts by Sony and Microsoft to put out simpler games and lower their prices will payoff big.

Nintendo's stock has risen 68% since the release of Wii, but that isn't phasing investors. Despite the recent success, investors are jumping ship faster than a PS3 exclusive.

I have a hard time believing this analysis though. It seems to me that Nintendo has so thoroughly dominated consumer mindshare that most casual gamers would never even consider the prospect of buying a PS3/Xbox 360.

I think that these investment types are also underestimating the true selling power of Mario. Mario is such an all-appealing game that not only will it be a massive hit with current Wii owners, but it could very well usher in an all new wave of popularity for Wii. Bringing retail grunts to their wits end as they have to repeat for the hundredth time, "No, we don't have any more Wii's in stock...please stop calling Mrs. Johnson."

Maybe I'm wrong. It's been known to happen from time to time. There's only one man of whom we can assure accuracy! It is said that whenever need is dire...all one needs to do is sound the call and he'll be there to sooth the gaming future.

PAAAACHTEEERRRRR!!!

(I'm sure he'll be here soon to clear up these murky waters.)

Posted by Brendon on 08/30/2007 at 05:23AM

I'm not too surprised at this. Nintendo's been doing great in the market, and there's really not a lot of ways to go other than down.
In other news, I'm sure Pachter will show up when he feels like he hasn't paraded his name often enough that day. My money's on Sunday.

Posted by Viewtiful on 08/30/2007 at 06:05AM

Hmm. No news comes out Sunday. I'm going with Monday.

Posted by BubyDudy on 08/30/2007 at 09:12AM

I cannot really find a way for Nintendo to fall. Wii attracted so many softcore and no-gamers and it did so because that was its goal. Neither PS3 nor 360 can achieve this because they are not designed for it. In addition, Nintendo is just started pulling out some games for the hardcore fans and 3rd parties are joining too so in my opinion the only way is up. Furthermore, even if Wii fails, Ninty will always dominate in the DS vs PSP battle...

Posted by dooganking on 08/30/2007 at 10:23AM

you guys make this sound as though these companies depended strictly upon gaming... when in actuality the only one that does is nintendo... remember the general rule of stock market is to buy low and sell high... alot of people could be saying "i've made alot of money on this already... i'm going to get out while i'm ahead" and when enough people say that, the stock goes down... also, the prospect for microsoft and sony are slightly better over the holiday season than they are for nintendo (also partly because those companies are a bit more diversified)
just my thoughts though... pachter will surely rip them apart...

Posted by BubyDudy on 08/30/2007 at 12:09PM

Now that's a point... :D

Posted by Quasar on 08/30/2007 at 12:27PM

Why would Wall Street yell "sell" in the midst of Nintendo still being a strong gainer? They're trying to convince investors to drop the stock which drops the price of shares. And guess who is going to buy all those undervalued shares? The brokers and insiders who stand to make a killing. Once Nintendo stock reaches the right low buying point for these vultures, Nintendo stock will miraculously be considered a "buy," the price will rise and the guys who told everybody to sell their stock (and bought them back cheap) will make a nice windfall profit.
Conspiracy theory? No. This happens every single day of the year in the stock market. Illegal? Perhaps. Unfair? Definitely.

Posted by bull 53 on 08/30/2007 at 01:08PM

It's just odd to see this happening shortly after the release of on eof the wii's most anticipated titles - Metroid. I would have thought, like EA w/ Madden, Nintendo's stock would have taken a little jump. Maybe this is why I always sucked at Wall Street Kid on NES...

Posted by Archem on 08/30/2007 at 06:47PM

Do you know what big name hit is coming out in December? Super Smash Bros. Brawl. That game will sell like water in the desert, and you know it. I understand that, with the upcoming release of Halo 3 and the freshly released Bioshock, the XBox 360 is looking mighty investment-worthy, but what exactly does Sony have coming in? Are we expecting to invest in movies and music or something? Honestly, I don't think this prediction is exactly a reliable one, or at least not a fully reliable one.