Nintendo Co., Ltd (ADR) (NASDAQOTH:NTDOY)

CAPS Rating: 2 out of 5

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Player Avatar Richthofen80 (88.54) Submitted: 5/9/2008 3:49:48 PM : Underperform Start Price: $69.49 NTDOY Score: +124.26

One triiick pony. Sony and MS have other divisions to take it through lean times. Nintendo's approach, appeal to the casual gamer then attempt to shaft that gamer by making him buy all these ridiculous control adapters is not sustainable

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Member Avatar LimoDriver1971 (36.98) Submitted: 7/23/2008 12:34:25 PM
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My only response to that is...How many kids do you know that are knee-deep into one form of gaming or another? If you know anyone that fits the bill, count the adapters, the software, the add-ons, and tell me what they've got. Although pricier, there is no difference between this and Barbie with her entire entourage, her vehicles, her multiple homes, and more clothes and shoe options than Jackie O. Like you I don't necessarily agree that this is the right approach, but it works, because parents nowadays (in some cases) want to park their kids at a TV or computer terminal so they can go for a Harley ride, or head out to their second job.And, if they have a Harley, and/or a second job, they can afford the peripherals that keep their kids occupied. It is a sad state of affairs unfortunately.

Member Avatar zgreenwell (79.93) Submitted: 8/6/2008 2:32:09 PM
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It worked for Pokemon and the DS and it is working for the Wii.

Member Avatar guinness4life (63.76) Submitted: 10/22/2008 1:42:37 PM
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I'm an avid gamer. I'm the first to admit that technically, the wii's laughable and the games aren't very good. But being objectively better won't necessarily sell more, nor will it make the system more profitable. Fitting the needs of a wider market segment will.The kids and old people love it. There's a market for simple games (kind of like cell phone game co's). Wii appeals to that market very well. Plus, they're probably producing the only console system that isn't selling at a loss. Their hardware is actually profitable out of the box. That's huge in consoles.I think the biggest problem is Nintendo's stranglehold on 3rd party games. They don't release enough of them. If they don't get on that, they may kill the system. For now though, bullish. I don't think this means MS and Sony can't make money though, too. Their system is aimed more at gamers like me and you.It's like VHS vs. Beta. No one who knew anything about movies would tell you VHS looked better. It flat out didn't. But Beta tapes were HUGE and impractical, so they lost. They didn't fit a mainstream market segment. It's the same thing with anything else. Proust is obviously superior to Dan Brown in every possible way. He certainly isn't more popular.

Member Avatar A6EIntruder (51.43) Submitted: 4/3/2009 1:42:09 PM
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Richtofen,I agree that Nintendo is a one-trick pony, but it's a one trick pony that works very well. I just interviewed my class and found out that 11 of them either have the latest Nintendo DS-whatever. That is not including the various flavours of Gameboy or Wii. Now, to qualify my statement, I do not believe that this very limited sample set tells the whole story...but I think it is at least illustrative of the unit's popularity and penetration--even in an economically disadvantaged neighborhood like I work in.The units are inexpensive enough and the 'ridiculous control adapters' mean money for you and me when we invest. One of them just showed up with a Guitar Hero add on unit!

Member Avatar A6EIntruder (51.43) Submitted: 4/3/2009 1:45:48 PM
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Guiness,Great point about the 3rd-party programming stranglehold. I believe that sounds a cautionary note...game systems are better thought of as platforms for a reason, and the more restrictive one is about letting others in, the more you could choke growth.

Member Avatar stan8331 (97.26) Submitted: 5/7/2009 12:49:11 PM
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No argument with your overall thesis, but a small correction: the problem for Betamax wasn't its size - they were actually smaller than VHS tapes. Its ultimate downfall was that VHS held an additional hour of content per tape, and that extra hour made the critical difference back when tapes were expensive. I still have a bunch of old Beta tapes packed away somewhere... :-)

Member Avatar stan8331 (97.26) Submitted: 5/7/2009 12:50:35 PM
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Sorry - that was meant for guinness4life.

Member Avatar TheGreenMonster (< 20) Submitted: 8/13/2009 2:01:16 AM
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Unsustainable? Accessories have much better profit margins than the hardware... whats unsustainable is MSFT or Sony selling their hardware at a loss.... which, come the expected price drops this fall will likely be where they sit despite bringing manufacturing costs down. The more accessories and software they sell the MORE sustainable Nintendo is. The Wii already has the largest install base of the 3 current-gen systems, and all of these need accessories. When the pricepoint drops and sales go through the roof guess what? All of these new systems in homes will need the same thing.... more accessories and software. Sounds like a great plan to me.

Member Avatar F111Driver (41.77) Submitted: 3/25/2010 8:02:24 AM
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Interesting viewpoints...One trick pony? This company was into gaming way before MS and Sony got serious about gaming. Remember Nintendo DS? I can recall when every kid on the street had one in their backpack playing Mario Bros at the bus stop. Then, when Sony and MS started getting serious and stole NTDOY's thunder, they shot back with Wii. Actually, you've got to respect their strategy; "It's too costly to get into the Sony/MS battle, so let's create a niche for the average person that doesn't spend seven hours a day gaming." Granted, they have to continue innovating (i.e. Wii Fit) but in the meantime they are staying out of the Sony vs MS dogfight. They recently lowered their gaming console price so there is a clear price advantage to appeal to their customer base. I'm not prepared to say this a a long term buy but for the short term I predict some decent returns as Sony and MS continue to beat each other up while NTDOY turtles along. We'll see.

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