Perhaps Nintendo and Sony could join forces? Any partnership would have to favor Nintendo though because they hold all the cards. Sony is in bad, bad shape, IMHO.
It seems like the stock's weakness can be attributed to another anemic E3 performance by Nintendo along with concerns that Sony and Micrsoft's motion controllers are going to further depress Wii sales. I doubt this technology will arrive in time to help beat Nintendo in this generation but Nintendo should be very concerned moving forward. (Which is why a tie-up between Sony and Nintendo would be good because you'd merge Nintendo's game library with Sony's technical prowess to build a console that appeals to a very wide audience.)
I don't really see this stock going anywhere unless the new Wii Motion Plus and Wii Sports Resort catch fire and spur Wii sales.