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Analysts casting doubt on Wii's stocks |
Listed in: Wii Tags: London, Microsoft, North America, Sony, Wiimote
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In the past few months, Nintendo has been the stock market's rising star, soaring above the competition with shares selling for 26 times higher than expected, but some analysts are skeptical on whether Nintendo can keep it up.In fact, 20 analysts have slapped a "sell" label on the Kyoto-based firm's shares last month, basing their assessment on the rising competition from Sony and Microsoft.
Nintendo's rivals have stepped up production of casual games and have lowered their price points in North America in hopes of drawing back the consumers who have bought a Wii.
The bulk of this coming holiday's sales will belong to Nintendo, London-based analyst Pelhan Smithers says, but warned that the Wii will not dominate in the same manner that it has been doing. "Next year, the playing field will level even more," he predicts.
Japanese analyst Hirotoshi Murakami says that the way to go for Nintendo is to keep the casual user base happy. "Nintendo must hold the interest of customers who may have bought a Wii for the novelty of swinging the controller for tennis and baseball," he suggests.
Murakami adds that a few sessions with the Wiimote and Wii Sports are enough to become a bore. "Whether Nintendo can continue to make games that sell well remains a question,'' he concludes.
In contrast, other analysts have more optimistic takes on the matter. To read their rationale, see the read link below which will lead you to Bloomberg's full report.
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not news, sorry
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