Okay so Nintendo was, when Wii came out, an amazing buy. If you recognized early enough that Wii would turn that brand around, you were a genius. But today,the smart money will realize that the competitive landscape is about to shift away from Nintendo.
As you probably know, the Xbox Kinect has just launched, and the Sony Move has been out for a little while (less buzz). These are 'me too' copy-cat technologies from Nintendo's wildly popular Wii console.
Somehow Nintendo does not have an HD system. Yet everyone you know has an HD TV. So they are basically dead in the water. It's been a great run, the company is worth $35 billion today. That is actually more than all of Sony (33B), and Sony does a lot more than just sell Playstations (and make money from the game licensing).
In fact if you ask me, and clearly no one is, Sony should spin off the Playstation unit into an IPO. I would buy it in a heartbeat. But you won't hear me saying buy SNE.
In real life this would be a tough trade to pull off, since it's a pink sheet stock. But what I have to say here is highly relevant. It's relevant to SNE, MSFT, even GME.
Incidentally marketwatch just had a cover story about how it may be time to get back into the gaming sector.
Which I tend to agree with. Games are getting a wider and wider audience, and the new motion gaming add-ons for Nintendo's competitors will just further this trend.
Confidence 8. Sorry Nintendo, your profits are in another castle.