robert99

Activision: Potential for Explosive Returns

ATVI is a good long term play on the future of the video game industry. It's simply the best managed large cap video game company in the world, and if the industry continues to grow as it has been doing for the last 20 years, ATVI will provide nice returns for the next 20.

February Gaming Sales: Still a Growing Industry

Meanwhile, NTDOY is CHEAP. P/E of about 6, 6% yield, conservatively managed company, high cash/low debt, etc, etc. If this recession doesn't drag on for a decade and Nintendo is able to remain innovative (i.e. create something that sells well during the next cycle), NTDOY will probably double from here and yield 10% on cost in ten years. If it dips below $30, I'm a buyer. Already own ATVI, which is the best way to play general gaming imo.

The Video Game Industry: Nintendo Back In The Lead

How bout that COOL yesterday, eh? I sold at the top, and hopefully, it drops back down a bit so I can buy back in...

The Video Game Industry: Nintendo Back In The Lead

Excellent article, thanks for writing it.

One video game company you forgot to mention, however, is Majesco, which trades under the ticker COOL. After a failed attempt to break into the premium video game segment in 2005, and some restructuring, they have returned to their traditionally successful strategy of producing 'value oriented' (low development cost) games, and appear to be on the brink of a turnaround. They announced their intention to focus on games for the DS and Wii early on, and at least in that regard, they have a small advantage over other game companies who scoffed at the Wii and instead focused on the PS3. Another factor to consider is how easily 'value oriented' games lend themselves to the Wii and DS, as the very definition of Nintendo's intended strategy with the Wii and DS of 'creating a new consumer demographic' is almost synonymous with easy, pick up play games of the puzzle type, which Majesco has traditionally specialized in. COOL was initiated at a 'buy' with a $3 price target by Nollenberger Capital last week, and I expect them to quickly surpass that mark as Wii and DS sales continue to ramp up.

Once again, thanks for writing the article. People look at Nintendo as expensive, but what they fail to understand is Nintendo's growth rate and remaining growth potential. As you stated above, high quality games drive console sales drive game creation, and as third party game makers begin to pump out high quality third party titles, demand will probably increase. The market is nowhere near saturation.

One more thing - Nintendo is not sitting on their asses letting the DS and Wii print money, as is evident by their showing at E3. I also read an article a few days ago which stated Nintendo was working with the Seattle Mariners, to introduce a WiFi system for DS owners, by which they can use their DS to track scores and order food and drinks. As long as a company like Nintendo is innovating in ways such as this, sales will remain strong.

I too am long on Nintendo, as well as Majesco.