Bloomberg repots that KBC Securities in Japan has downgraded Nintendo stocks from 'buy' to 'hold' because despite "amazing growth... Sales in the U.S. and Europe are peaking".
This, says KBC analyst, Hiroshi Kamide means that financially, "We believe that it is reasonable to expect a tougher trading environment.''
In games terms, the company also claimed that DS console shipments would drop "by 6 percent, and Wii software sales by 5 percent" in the next year."
All this analysis comes shortly after Nintendo managed to sell 1.4-million copies of Super Smash Bros. Brawl in its first week on sale in the USA.
That comment about 'amazing growth' should be 'front of mind' as the execs like to say. The fact that stock has been set to 'hold' means that the bean counters are telling clients not to expect such strong growth in the near future. So, before the fanboys confuse "downgrading stock" with "Nintendo is dead" bear in mind that this is all about fiscal growth rates.
Microsoft appears to believe that there is still plenty of life in the casual games market that Nintendo has created in recent years. The Seattle-based Xbox 360 maker has just appointed a former European managing director of Nintendo to push the Xbox 360 and LIVE attack on just that casual market.
We've contacted Nintendo today to see if European sales are - by audit - peaking. We'll report back as soon as we hear anything.
Source: Bloomberg
This, says KBC analyst, Hiroshi Kamide means that financially, "We believe that it is reasonable to expect a tougher trading environment.''
In games terms, the company also claimed that DS console shipments would drop "by 6 percent, and Wii software sales by 5 percent" in the next year."
All this analysis comes shortly after Nintendo managed to sell 1.4-million copies of Super Smash Bros. Brawl in its first week on sale in the USA.
That comment about 'amazing growth' should be 'front of mind' as the execs like to say. The fact that stock has been set to 'hold' means that the bean counters are telling clients not to expect such strong growth in the near future. So, before the fanboys confuse "downgrading stock" with "Nintendo is dead" bear in mind that this is all about fiscal growth rates.
Microsoft appears to believe that there is still plenty of life in the casual games market that Nintendo has created in recent years. The Seattle-based Xbox 360 maker has just appointed a former European managing director of Nintendo to push the Xbox 360 and LIVE attack on just that casual market.
We've contacted Nintendo today to see if European sales are - by audit - peaking. We'll report back as soon as we hear anything.
Source: Bloomberg
Companies:
Nintendo
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Comments
ozfunghi 21 Mar 2008 19:33
1/2
Well, i think it's true... on the other hand, Wii has been "peaking" for over a year now (stock still sells out righ after shipments arrive) and DS has been peaking for over two years now. So it's all about how you look at it.
YenRug 23 Mar 2008 15:03
2/2
I'd like to know what information these so-called analysts base their decisions on. To me, they assume the videogame market runs exactly like every other business, when, in reality, once a system gets to the top of the pile it tends to keep on selling, a self-reinforcing market where it keeps high sales because it is the most popular system. Now, I know the PS2 had a lot of repeat sales because of long-term lifespan issues, which helped bump their numbers up, but market saturation for the Wii and DS are a long way off, yet.