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Nintendo passes Sony in market value?

June 26, 2007
By Ken Worsley


Although Nintendo passed Sony briefly in terms of market value on Monday, that didn’t stop headlines such as “Nintendo outstrips Sony in market value” from popping up. Nonetheless, Nintendo settled in the 11th spot in terms of market capitalization, just once place behind arch rival Sony.

Nintendo certainly is winning the console war up to now, and for the short to medium term, with the success of the Wii and DS platforms. This observer, however, still believes that the Play Station 3 will be more successful in the long term. Call me crazy.

As the Nikkei tells us, “For the current fiscal year, Nintendo projects a group net profit of 175 billion yen, a slight increase from a year earlier. By contrast, Sony forecasts a 2.5-fold gain in its group net profit to 320 billion yen.”

Sony also sells LCD TVs, and other home electronics. The Wii is a fad and Nintendo ’s shares seem overvalued.

Filed Under Business, Entertainment, Equity Markets 

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Comments

3 Responses to “Nintendo passes Sony in market value?”

  1. john on June 29th, 2007 3:34 am

    This observer, however, still believes that the Play Station 3 will be more successful in the long term.

    Why?

  2. Ken Worsley on June 29th, 2007 3:47 am

    John, to tell the truth: I’ve played both and the PS3 is better for people who like games. Wii is fun for a bit, but mostly with another person. The graphics are disappointing. PS3, in the long run, is a more powerful machine that will deliver better games.

    One of the PS3’s biggest problems is the fact that Sony went with a new software architecture for programmers. People who could code PS2 games couldn’t make a smooth transition to the PS3 platform; there is a huge learning curve. That will take some time to work out, and has been one reason why so few big titles have been released so far. It will take time to unlock the potential of the physics engine. If we look at the early PS1 games versus what was being released at the end of the product cycle, the PS1 made more progress than any other console in history, including Nintendo’s Family Com (the NES in North America).

    I think this is the path that the PS3 is headed down. It is powerful, and supports a strong software architecture, but will take time to unlock. At the same time, it will be somewhat more extensible than the Wii. Wii is a fad, and Nintendo, in the long run, will do better with the DS.

  3. Mr. Gordy on September 30th, 2007 12:38 am

    I can agree, I own a Wii and it gets boring after a while, if Nintendo expects to stay in the competition for long, they should come out with some flashy new titles to drag their consumers back to the Wii as well as the DS.
    PS3 on the other hand is definitly for more of the hardcore gamer just because of the capability of the console. Sony, as well, should get some big titles out too just to drag some consumers in as well such as the much anticipated Halo 3.
    Overall I prefer PS3.

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