Are Microsoft and Sony Closing in on Nintendo?

Is Nintendo (NTDOY.PK) 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 (MSFT) and Sony (SNE) 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 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.”

Comments

[Gaucho420:]

I follow both analysts comments on this and then regular people's...the reactions are quite different. I have yet to find a single Xbox player who has any significant interest in the camera...however, Wall Street loves it.

I beleive it is because Wall Street analysts make a ton of dough and simply fail to understand that for the average person or household, a $200 attachment to an already pricey console simply isn't excitting.

If I were you, I'd look back to see what these so called experts thought of the Wii out the gate vs. the PS3, as the over-riding sentiment on Wall Street was the PS3 was going to run all over the 360 & the Wii. I beleive the key factor in their terrible analysis is the fact that either they don't play games or they get them for free or they make so much money, it might as well be free.

So I disagree...I can tell you my survey of young & old gamers has shown no great interest in this due to the cost, the bad reputation MSFT has in putting out a weak product in the 1st gen and the simply fact that many already own a Wii and even with a camera, it didn't look that impressive.

So until I hear its $199 with two free games and one year free of Xbox Live...this product is dead in the water. It'll have a few users ready to grab it out the gate, but unless things change radically as to its price and offering, it won't have many users due to the pink elephant in the room all videogame analysts seem to forget about (until weak sales show up)...THE PRICE, on top of the price for an Xbox, Xbox Live subscription, WIFI antenna and of course, the dreaded RRoD.

Jun 15 07:26 PM

[Gaucho420:]

I will add...how come the PS2 still outsells the PS3?

P-R-I-C-E.

Same goes for the DS over the PSP.

The Wiimote will win out over this no-dout cool looking camera, for the exact same reason. And...isn't it more realistic to box, play tennis or drive...with a tennis racquet, steering wheel or gloves?

Just sayin'. How come no ones talked about that? Holding a joystick does make certain games more realistic...good luck with Tiger Woods Golf, for example...not everyon owns a golf club, skateboard or apparently, a steering wheel to "scan" into this item, as the movie suggested.

Jun 15 07:30 PM

[SLF:]

"Besides the Wii MotionPlus, an attachment that allows players to check their pulse"
The Wii MotionPlus is an add on to the Wii Remote that makes it more accurate (it's said that it's near 1:1).
You really lower your credibility when you get the facts wrong.

I agree with Gaucho as well. In a post-economic collapse world, the idea that people are going to spend $200 dollars more on their 360 for a peripheral that they won't see till 4-5 years into a console cycle is ridiculous. The PSPGO is just as ludicrous at $250-.

If there's one thing the Wii has going for it, it's been the price.
If there's 2, then let's add that the peripherals are pretty cost-effective and not necessary to play the games (with the exception of Wii fit)

Jun 16 04:07 AM

[User 422955:]

For MSFT, gaming is only a very small part of their business. For Sony, gaming is only part of their business. For Nintendo, gaming is their only business. They have no debt and sit on an enormous pile of cash. It is far too early to count them out.

Jun 16 07:36 PM