Nintendo's Wii Leaves Sony's PS3 In the Dust

Nintendo (NTDOY.PK) is just a great stock to own now. I have made no exceptions to this over the last month or so and I continue to think this stock will outperform Sony and Microsoft, not to mention most of the market this year. My fundamental case for Nintendo was made back in January, but now I experienced first hand, what everyone has been talking about for weeks now.

I visited no less than 6 stores on Monday night - EB Games, GameStop (GME), Best Buy (BBY) and Target (TGT). None of them had the Wii in stock. I spoke to one of the employees at GameStop and he told me that they get Wii shipments from time to time, but the units sell within minutes. Talk about demand.

He did volunteer that they had plenty of PS3's stacked up in the back. Don't forget that while Sony (SNE) loses money on their consoles which are now starting to collect dust, Nintendo actually makes some money on the console itself.

With the video game cycle looking strong this year, I believe it will be a good year for Nintendo - just look at the unit sales numbers for products like DS, DS Lite, Wii, Zelda and soon Mario Bros. If last quarter's earnings are any indication, this year should be good to Nintendo fans and investors alike. Game on!

Full Disclosure: I have positions in NTDOY but my position might change anytime without notice.

NTODY.PK vs. SNE 1-yr chart:

Comments

[Richard Alv...:]

Nintendo is far from done out selling Sony. I wager the majority of people buying them are hardcore gamers. I would say 20 hardcore gamers to 1 casual, since no casual gamer would stand in front of the Nintendo store in NYC for hours...

2007 Feb 14 02:32 PM

[Faisal Laljee:]

Actually, Wii is more for the casual gamer than it is for the hardcore ones. It is truly a console for the family and game night.

2007 Feb 15 04:41 PM