Are Microsoft and Sony Closing in on Nintendo?
Is Nintendo running out of ideas? Besides the Wii MotionPlus, an attachment that allows players to check their pulse, Nintendo did not introduce a new gaming device at this year’s 3E convention.Meanwhile, Microsoft and Sony unveiled motion control devices that will compete with the Wii. Analysts wonder whether Microsoft and Sony are closing in on their competition.
Nintendo is the company we turn to for major innovations in the video gaming space, but all they have given us are rehashes and remakes for years now. - Silicon Alley Insider’s Sachin Agarwal
UBS analyst Yuhki Nakayasu notes, “We do not think Nintendo will find it easy to maintain the competitive edge established with the NDS/Wii unless (a) new portable game hardware is brought out and (b) genres for the Wii are expanded. “
Mia Nagasaka, an analyst with Barclays Capital says, “We believe Nintendo’s presentation generally matched the market’s subdued expectations, although investors should note that it could be slightly negative for the share price. We think the unveiling of the “Wii Vitality Sensor” will not impact the share price because the minimal details given make it difficult to assess its attractiveness.”
Nintendo’s (ADR: NTDOY) stock price has been slipping since January of 2009 when it was priced at $48. Today it is at $33.10.
Microsoft received more favorable reviews about their motion controller than did Sony. Forrester analyst Paul Jackson, comments, “The first two games Microsoft previewed were very polished, but ‘Milo’ showed where this stuff can go above and beyond in gaming.”
Nintendo’s President’s, Satoru Iwata does not seem to be worried about Nintendo’s position in the market despite their lack of innovation. He states, “It’s too early to tell whether Microsoft and Sony’s plans pose a threat to the Wii.”
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