Nintendo shares have risen to record highs and Goldman Sachs has praised the company for its innovations.
Nintendo is big at the moment and the company has seen growth in a way that almost nobody could have predicted. Just a year or two ago when the hype about the next-gen consoles was in full swing then nobody would have expected that the Wii (or Revolution, as it was then called) would be such a market smash. The smart money was on the PlayStation 3, not a slightly enhanced GameCube.
Now, we can all see that the smart money was wrong.
The Wii has proven a hit with both the hardcore and the casual markets and the DS line has cemented Nintendo's already undisputed rule of the handheld kingdom. Meanwhile, the
PS3 is selling at a slower rate than the GameCube - ouch!
All the while Nintendo shares have been rising, reaching a record high yesterday, and the speculation over at
Gamesutra is that the company could "
once again raise its earning forecast."
To top it all off, Goldman Sachs has now compared Nintendo to Apple in terms of potential profit and market innovation.
Investment bank Goldman Sachs gave Nintendo an official 'Buy now' rating recently which has pushed demand for Nintendo shares ever higher and the price per share is now around $610 or £305.
According to
Reuters, Goldman Sachs has said that "
We believe Nintendo's talent in creating new markets, evident from the launch of the DS and Wii, could bring it close to the level of Apple, whose high valuations are due in large part to its innovative business model.”
How do Nintendo and Apple compare and who would you buy shares in if you could? Let us know what you think in
the forums.
Nintendo makes its money from basically two places (1) games (hardware & software) (2) toys.
Apple is involved in far more diversified and thus will always be a larger company. I can't see Nintendo branching out into anything else any time soon - it doesn't fit in with the company's mantra of putting games first.
Additionally the companies fans are different. Nintendo has a lot of sales in its home region simply because it's a company from that part of the world. Apple has fanboys, but they're there for far more solid reasons. Apple could screw up, release an unfashionable product and give it bad customer service and all their fans would disappear. If Nintendo did the same - well they've already done it a couple of times and sales in home markets continued to be strong.
People have to ask what's next for Nintendo. The Wii is starting to see some strong games on the horizon - though the DS seems to be stagnating slightly (I love mine, but there haven't been any really 'wow' games for a while now). Whatever happens the wii will now be a huge success - the sheer amount of systems owned means that any developer not developing for it is mad. Looking 4 years down the line, time for a wii 2, that'll decide whether Nintendo go back to their previous position. I personally have faith in them as they're the one company in the area that do genuinely innovate.
I can't wait to see what will come from both companies in the future.
the $399 USD smaller/cheaper less media hub-ish model should help if rumors are true. And the 80GB US model is going to drop $100
It can run WOW at 60+fps, so maybe Apple are thinking about getting into the console market, who knows. Sure would be interesting if they did thats for sure.
that is impressive for a media center