Monday, June 25, 2007

Nintendo briefly goes past Sony in market value

Sony is a behemoth, much larger than Nintendo with a range of items that it sells. It's sales are 8 times larger than Nintendo, so it must have been very shocking for Sony that Nintendo, even briefly, crossed Sony in market value on the stock exchange. This was for a short while, and eventually Nintendo dropped to below Sony in market value.
All this is arising out of the sales figure for the Nintendo Wii. It out-sells the Sony Playstation 3 by 3 to 1 in Japan and 2 to 1 in the US. Those are figures that are pushing a lot of respect and expectations for the Nintendo stock, even if all those expectations cannot be met.


"It is becoming quite clear that Nintendo is taking back its market share from Sony in the console market while well defending its stronghold of portable games," Mizuho Securities analyst Takeshi Koyama said.
Demand for Nintendo's DS handheld game players also far outstripped that for Sony's PlayStation Portable. Koyama said, however, that investors should watch out for a possible pull-back after two year-long bull runs.


It is of course unreasonable to expect this to continue, Sony is a far larger company, into a number of different projects; while Nintendo is effectively a one-horse company; after all, if some other company comes out with a great new innovation, Nintendo could suffer the fate of Sony.
Nintendo has turned itself round pretty fast in the recent past, and grown at pretty good rates, and the stock has grown faster. Whatever they are doing, they are obviously doing right.

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