"We believe that this industry is virtually recession-proof and will be driven almost entirely by the release of new games, and continued hardware sales, rather than any macro-level consumer spending trends.
Last year's momentum has continued into the first half of 2008; year-to-date software sales are up 41% in the U.S., following 34% growth last year. Furthermore, this will likely accelerate in the coming months, driven by the releases of Grand Theft Auto IV, Nintendo's Mario Kart Wii and Wii Fit, and Konami's Metal Gear Solid 4."
All that could happen, in which case I made the wrong decision getting out for 6 to 8 weeks. At any rate, anyone who holds will likely make money if Wiifit is a big as it appears it will be and (of course) Nintendo can gauge demand this holiday season. I have to pay tax on gains so it will take a big drop for me to get back in with the same number of shares, so holding could very well be the best decision. Best of luck to you.
I still see this to be 100$+ stock, the growth/sales potential remains, I will never think otherwise until I see a decline in demand which is not likely at this moment.
Nintendo has excellent reputation to keep its products fresh and attractive to new and old clients.
I wouldnt be suprised if nintendo made another refresh model of the DS and sell another 25-30 million just because of it.
I don't see the company managment at fault. they're executing perfectly. The only thing that worries me and always has worried me is the Yen, nothing else.
And from what I am seeing the Yen is in reversal and is on steady decline against the dollar, the Yen may spike back up couple of times but see steady decline in the mid-term.
I see it as a negative thet Nintendo cannot forcast demand for their products. Even by Nintendo's own conservative estimate, they could have sold a billion more dollars worth of product last year if they had met demand. I remember in November when you forcast the stock would hit a hundred dollars a share soon, and it would have if Nintendo had forcast demand correctly and met it. I guess it is all in how you see the numbers.
I rather have high demand with low supply than high supply and low demand.
Nintendo is playing this very carefully, it's part of their strategy to allocate their products where most needed and most profitable.
Manic, given Nintendo has great products, at some point in the past year they should have been able to ramp up Wii production enough to get a few on the shelf everywhere. No matter how great demand is, if they are incapable of producing enough product to meet demand they are hurting sales. Even almost two years after the Wii was introduced I had a friend from overseas shop for a Wii for a week and leave here empty handed.
Bigshots withdrawn? uhh only bigshots I know of are the ones that make the consoles, and that is Nintendo, Sony and MS which are all going to be present at E3.
Wii Fit old news when it hasn't even been launched worldwide? If you haven't noticed Wii Fit pre-orders are already sold out.
Ride up is over? Then short with all your money. We'll see what happens by mid-summer ok?
"all the video gaming industry"? Don't you so-called investors pay any attention? The big shots have withdrawn from E3. Look it up.
Wii Fit is OLD NEWS. It was a predicted bestseller LAST YEAR. OLD NEWS does not move stocks, dummies.
A 30% fall is not a "dip," you dip. This stock has had its back broken and is heading down. The charts do not lie, but you sure do. And BTW, ignoring macro conditions is the argument of a fool.
You big talkers aren't actually buying this stock, you just like to spout off to fulfill your fantasies. The ride up is OVER.
Where is the dip? I guess you forgot that we have a little gaming convention in may called E3 where all the video gaming industry show their cards for the next year.
Not to mention sales of WiiFit, Mario Kart Wii, Smash Bros... will make this stock going higher.
20-30% dip? Only time happened was because of recession fears, bearing japanese market and a rising yen.
Famous last words.
The real consoles appeal to people who have disposable income.
Wii, as the cheap populist gimmick, appeals to the people most affected by rising gas and food prices.
Xbox and PS3 might be recession proof. Wii will be hit hard.