Nintendo Stock Doubles In Last Few Months, Now Bigger Than Sony

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Nintendo Stock Doubles In Last Few Months, Now Bigger Than Sony

wario with treasure warioworld

The recent lift on console bans in China reportedly has something to do with Nintendo's stock rise.

You probably wouldn't believe it based on all the doom and gloom we hear regarding the Wii U, but Nintendo's stock has been steadily rising over the last few months. Its market capitalization (the total value of all its shares) has doubled to $18.4 billion, edging out Sony, which has dropped to $17.7 billion since last November.

Nintendo, based in Japan, has been trying to make inroads with neighboring China for years, a move that paid off when its stock price rose by 11 percent after China lifted its 14-year console ban. The runaway success of the 3DS is also responsible, as well as investor rumors that Nintendo will shortly announce significant changes to its business model.

While this doesn't necessarily mean that Nintendo has more money than Sony, it does mean that the business world values it more. What's more impressive is that this figure includes the entirety of Sony, which spans several entertainment and electronics divisions. While Sony's gaming division is going well with strong sales of the PS4, it seems its other divisions are the ones bringing it down.

For comparison, the biggest third party publisher is Activision Blizzard, with $12.7 billion market capitalization, with EA trailing behind at $7.1 billion. Microsoft is in a league of its own at $304.0 billion, although as with Sony, this figure includes all of its businesses and not just the games division.

Source: Metro

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...So basically, Nintendo is worth more then all of the Sony Corp?
Jesus, This is why you never doubt the House Mario Built and I can imagine that Nintendo's lack of Mature Titles would ironically be a help in the Chinese market.

I can't imagine the Government there being against a console that doesn't have Battlefield 4 or some other M.M.S. that demonizes the Chinese on it.
On top of that, China isn't exactly the most colorful place on earth so perhaps the bright and cheerful roster might be more appealing then all the blood and dirt of the western AAA market.

largest "video game company" in the world by revenue and pretty much always has been...as for comments above about BF4 and the like...it's not really in the same market...Nintendo is virtually unchallenged in it's core market...which is effectively "pre-teen" gaming...

people just grow up is all...and for some reason they expect Nintendo to grow up alongside them...which is kinda dumb really...

that's not to say Nintendo games can't hold enjoyment and depth for older players...they can and do...but it's not sales to that demographic that have always sat at the core of Nintendos business model...whereas when it comes to PS or xbox...there are virtual no "kid friendly" games for them...

Sleekit:
biggest games company in the world by revenue and pretty much always has been...as for comments above about BF4 and the like...it's not really in the same market...Nintendo is virtually unchallenged in it's core market...which is effectively "pre-teen" gaming...

people just grow up is all...and for some reason they expect Nintendo to grow up alongside them...which is kinda dumb really...

that's not to say Nintendo games can't hold enjoyment and depth for older players...they can and do...but it's not sales to that demographic that have always sat at the core of Nintendos business model...whereas when it comes to PS or xbox...there are virtual no "kid friendly" games for them...

I dunno, Sony has been pushing games like Ratchet and Clank, Little Big Planet and similar for a very long time. They defineately try to have a very broad appeal. More recently they tried the Wonderbook thing, it was largely scoffed at by gamers, but children seems to love it.

Sleekit:
largest "video game company" in the world by revenue and pretty much always has been...as for comments above about BF4 and the like...it's not really in the same market...Nintendo is virtually unchallenged in it's core market...which is effectively "pre-teen" gaming...

people just grow up is all...and for some reason they expect Nintendo to grow up alongside them...which is kinda dumb really...

that's not to say Nintendo games can't hold enjoyment and depth for older players...they can and do...but it's not sales to that demographic that have always sat at the core of Nintendos business model...whereas when it comes to PS or xbox...there are virtual no "kid friendly" games for them...

Eh as someone who's in their 30's now I've always found the shoehorning of Nintendo as a 'kids' console a little annoying. The problem is in our entertainment industry we don't really have a good distinction for 'youth', between child and adult. On the Playstation and Xbox there are many games that would be considered 'mature' to a teenager, but to most adults you could still call it a 'kids' game. Gears of War would be a good example of this. It will vary from person to person but I see those two as more 'aged 12-24' consoles, and eventually many will get to the point where they're not bothered by Nintendo's 'childishness' and can appreciate their games again.

Well played, Nintendo.

Just goes to show that the 'failure' (in the sense of units sold) of the Wii U has done surprisingly little to damage the company's reputation and revenue stream. I'd imagine that the Chinese will become major customers for Nintendo; their focus on family-focused fun will be welcomed over there...although the ones with obvious Japanese influences probably won't!

"Huur durr Nintendo should just give up and go third party"

http://www.youtube.com/watch?v=Ev_nuki0epE

Steven Bogos:
While this doesn't necessarily mean that Nintendo has more money than Sony, it does mean that the business world values it more.

The business world values Twitter at over $30 billion, yet they've never made a single dollar in profit and have no sensible plans that could ever manage to do so. What the business world says a company is worth via shares has absolutely nothing to do with it's value in the real world.

That's not to say Nintendo isn't successful. For all the whining about the WiiU, it's pretty clear that they're doing just as well as always. But comparing two imaginary numbers tells us nothing about their value relative to any other company.

Flippincrazy:
I'd imagine that the Chinese will become major customers for Nintendo; their focus on family-focused fun will be welcomed over there...although the ones with obvious Japanese influences probably won't!

That's the rub isn't it?

Especially with the recent? dick waving over some islands that they've been having.

Kahani:

Steven Bogos:
While this doesn't necessarily mean that Nintendo has more money than Sony, it does mean that the business world values it more.

The business world values Twitter at over $30 billion, yet they've never made a single dollar in profit and have no sensible plans that could ever manage to do so. What the business world says a company is worth via shares has absolutely nothing to do with it's value in the real world.

That's not to say Nintendo isn't successful. For all the whining about the WiiU, it's pretty clear that they're doing just as well as always. But comparing two imaginary numbers tells us nothing about their value relative to any other company.

That's... not exactly how valuations work. Shares are bought on the expectation that the holder will receive payments greater than the purchased price, either through dividends or share buybacks. Specifically for Twitter, the share price is not reflective of current profitability, but because revenue has grown from $28mil in 2010 to $254mil in 2012 and had already pulled in $253mil for the first 6 months of 2013. The expectation is that the growth will continue, even at a slower pace, and soon start pulling in tens of millions of profits... which will then go to shareholders.

Similarly for Nintendo, the net income for 2013 was 7bil up from a -43bil loss in 2012 - so the conventional wisdom is that absent the R&D and Marketing costs of a new game platform for a few more years Nintendo is at least likely to continue to be profitable, if not push those numbers up slightly. Meanwhile Sony went from -15.5 to -19.3, and the PS4 is currently being sold at a loss so is unlikely to push that number upwards (the gaming unit in particular went from +2.3bil in 2012 to -0.8bil in 2013).

So valuations are actually a pretty good indicator of "their value relative to any other company". They aren't perfect, of course, but claiming they're "imaginary" is a pretty big stretch.

Steven Bogos:
Nintendo Stock Doubles In Last Few Months, Now Bigger Than Sony

The recent lift on console bans in China reportedly has something to do with Nintendo's stock rise.

You probably wouldn't believe it based on all the doom and gloom we hear regarding the Wii U

Most of Sony divisions hasn't been making money at all.
http://www.reuters.com/article/2013/11/20/fitch-affirms-sony-at-bb-with-negative-o-idUSFit67734820131120
http://forums.theregister.co.uk/forum/1/2013/11/01/sony_profit_stock_debt_rating/
http://www.reuters.com/article/2012/11/22/us-sony-panasonic-ratings-idUSBRE8AL07B20121122

Nintendo is doing badly on the WiiU, Sony is doing badly damn near every division, only looking like their music, movies, insurance, and as of now possibly the Playstation division doing well, and they had to come out of the failure of the PS3, which destroyed all the money that the PS2 made and lost them some. PS3 only started recently to make money it's later life-cycle.

Also apparently the Chinese hates Sony and like's Nintendo and Microsoft more, so that also is going to be a factor.

Sleekit:
people just grow up is all...and for some reason they expect Nintendo to grow up alongside them...which is kinda dumb really...

I've seen this with Pokemon, people wanting a more mature version. I wonder, do people listen to themselves lol

Yet Nintendo is dying while Sony isn't.
At least according to the hobby internet "analysts" who just happen to be fanboys of other companies.

This makes no sense to me but it must just be the internet circle I find myself with. These kinds of announcements happen all the time actually. Like how the xbone has sold over 3 million units when all the hate and boycotting made it sound like it would take them several years to reach this plateau (if ever).

Just goes to show you that popular gaming / online opinion in these parts don't always translate to real life.

What makes me happy about this Nintendo news is that people seem to genuinely like the WiiU as a console. It gets almost no respect or praise but those few who own one don't tend to give it bad press. More than what you can say for the Xbone or PS Vita.

BiH-Kira:
Yet Nintendo is dying while Sony isn't.
At least according to the hobby internet "analysts" who just happen to be fanboys of other companies.

I hope you're not serious about this only being the result of hobby analysts...

Why would you not believe this to be possible? Sony is a very big company with god knows how many branches. Some of their branches do great, some are crippled by fierce competition, for instance radio, tv, etc.

Nintendo's stock being higher than sony's only means that a few big fish think it's more likely for them to get more money if they invest in Nintendo. Do you really think people listen to what some amateur on the internet says when wondering where to invest, say... 50000 dollars? I'd even say they don't give a rats ass about what games come out or this whole 'console wars' sillyness. they care about numbers and especially about those that will make them richer.

Nintendo also has a huge brand name value. Back in the days parents could say they bought their children a nintendo playstation. Or even a nintendo. For most parents that was an accepted description of what you bought your child for christmas. It's not as widespread anymore but some older people still don't make any distinction between nintendo and sony. Micorsoft is different because that has always been linked to pc's more.

What the stockmarket says has not a lot of value on you as a consumer. It only matters if you're in it to make money.

edit: hello everyone, i guess this means my time of lurking on here is over ^^'

I don't get it. Why would this affect Nintendo's stock price but not Sony's? Do they not both produce games consoles?

P.S. Thanks

Sleekit:
largest "video game company" in the world by revenue and pretty much always has been...as for comments above about BF4 and the like...it's not really in the same market...Nintendo is virtually unchallenged in it's core market...which is effectively "pre-teen" gaming...

people just grow up is all...and for some reason they expect Nintendo to grow up alongside them...which is kinda dumb really...

that's not to say Nintendo games can't hold enjoyment and depth for older players...they can and do...but it's not sales to that demographic that have always sat at the core of Nintendos business model...whereas when it comes to PS or xbox...there are virtual no "kid friendly" games for them...

That's what you say as a Westerner.

But in Japan Nintendo pretty much rules everything. That can't be done by only having children buying their consoles.

BiH-Kira:
Yet Nintendo is dying while Sony isn't.
At least according to the hobby internet "analysts" who just happen to be fanboys of other companies.

Well, keep telling a lie and eventually it might be regarded as the truth. Analysts will only see what they WANT to see, regardless of whether it makes any sense or not. It just really shows how incompetent most games analysts are when they can have the most objective numbers shown to them and they STILL preach that Nintendo is somehow struggling despite the fact that it's obvious that they are making more money than ANY of their competitors right now. The idiocy on display is so stupid it should be used as material for how NOT to study business, especially when dealing with an international scene

NINTENDOOMED

God, when will they just realize it's pointless and fail so I can feel validated about predicting their death for the past twenty years?

Steven Bogos:
...as well as investor rumors that Nintendo will shortly announce significant changes to its business model.

Can a man dream that that could mean the destruction of 3DS region locking?

I know I'm crazy but I live in hope.

TimeLord:

Steven Bogos:
...as well as investor rumors that Nintendo will shortly announce significant changes to its business model.

Can a man dream that that could mean the destruction of 3DS region locking?

I know I'm crazy but I live in hope.

We can dream TimeLord, we can dream but sadly that probably won't be the case at all since Nintendo doesn't seem to want more money than they already have.

Sounds like good news for Nintendo, we rarely get any good Ninty news on here that isn't met with non interest/biles of condescending hate.

That and they'll be bound to make even more money as it is which is a bonus all around for them.

shiz1:
*le snip*

i'm perturbed by your use of "back in the day"...because you see all my nieces and nephews (all of whom are under high school age atm) have "Nintendos"...both mobile and home.

all of them...

and i have 5 brothers...so i have a hell of a lot of nieces and nephews...

and so do all their friends (from what i can gather).

and trust me their parents don't want to buy them something else just yet...

mostly because for one thing you can't buy a Peppa Pig, or a Dora the Explorer or Ben 10 game for PS3 or 360.

you just can't...

because they don't exist.

seriously...just check out the shelves next time you're in a store.

and aside from Mario and the like...that their moms/dads tell them will be good...that's what they want...

and please don't frame modern "parents" as gaming inebriates...video gaming is at least 35 years old...ALL my brothers were/are "gamers"...as are most of their wives...hell, i'm the oldest out the lotta them...

basically the idea that parents don't know about gaming is itself out-of-date.

you'd have to have lived a very closeted life to be middle aged now and not be familiar with video games/gaming.

the only reason a non gaming friendly attitude is hanging about "in the media" and the like is because "the baby boomers" (ie current childrens parents parents) that are still running the world due to the sheer abnormal size of that particular generation...that and the greedy old bastards have most of our societies money...

anyway...

Full Metal Bolshevik:
That's what you say as a Westerner.

But in Japan Nintendo pretty much rules everything. That can't be done by only having children buying their consoles.

well i'd suggest additional cross generational appeal probably has a lot to do with Japanese culture ie "Kawaii"

besides sony does OK in Japan too...and the likes of Skyrim and other Bethesda games are massive there as well...MS consoles ? now they get near enough completely ignored...and they are clearly not on the same "AAA" "scene" page as "us"...

anyway don't worry about Nintendo...it has $10.5 billion in the bank (never mind "market capitalization"), zero debt and, even if it was making huge losses every year, that considerable nest egg would keep the company going into the 2050s...which is near 40 years in the future guys...

image

at the end of the day the reason "Nintendo is Doomed" is now a meme is because it's basically...crap.

I'm pretty sure if you were to compare game department to game department, at the moment Sony would be worth more.

However Sony's consoles department is not the ENTIRETY of Sony corporation, and if I'm not mistaken all of those branches are fast sinking ships unless they can get a big turn around. Whereas Nintendo is only in the videogame making sphere (and Hanafuda cards if you really care about that).

It's actually really troubling to see that Nintendo has exceeded Sony in that regards.

Mainly because investors know that even the the PS4 is doing well now, the console side of things will not be able to hold up the corporation by itself. Not without some serious hacking off.

Sleekit:

shiz1:
*le snip*

snip

woah, hold your horses, darling. might want to read what i wrote again. i said back in the day, which refers to the past. the use of the past tense shows that i'm talking about... the past. saying it's not as widespread anymore but older people sometimes still do it shows again that i think the stereotype belongs to the past and only the parents of people who are parents now use it. Yet you somehow decided that i'm talking about modern parents, while i was clearly talking about the 50+ generation(AKA the past generation of parents). and then you conclude that i'm wrong because it's an outdated view that only the 50+ generation hangs on to...

Magenera:

Also apparently the Chinese hates Sony and like's Nintendo and Microsoft more, so that also is going to be a factor.

Source? Are there any examples of China hating Sony?

VG_Addict:

Magenera:

Also apparently the Chinese hates Sony and like's Nintendo and Microsoft more, so that also is going to be a factor.

Source? Are there any examples of China hating Sony?

That's actually something I wanna know too, because in the lat couple of years China and Japan's governments have no been seeing eye to eye very well, and it be weird that suddenly they'd love one Japanese based and founded company over another. Only thing that would pop in my head for China hating Sony would be Foxconn construction, and that wouldn't explain liking Microsoft then because Microsoft also constructs Xbox Ones at Foxconn. Then again, most modern electronics are made at Foxconn now.

Dragonbums:
I'm pretty sure if you were to compare game department to game department, at the moment Sony would be worth more.

However Sony's consoles department is not the ENTIRETY of Sony corporation, and if I'm not mistaken all of those branches are fast sinking ships unless they can get a big turn around. Whereas Nintendo is only in the videogame making sphere (and Hanafuda cards if you really care about that).

It's actually really troubling to see that Nintendo has exceeded Sony in that regards.

Mainly because investors know that even the the PS4 is doing well now, the console side of things will not be able to hold up the corporation by itself. Not without some serious hacking off.

Yeah, that's the big problem; despite Sony bragging about the PS4 it doesn't look to be reversing the company's BIGGER problems. Heck, I doubt the PS4 is even making a dent in Sony's insanely high debts. And despite all that NINTENDO is the one that apparently is on the brink of irrelevance according to websites and "analysts". Wake me up when people start being logical again.

Dragonbums:
I'm pretty sure if you were to compare game department to game department, at the moment Sony would be worth more.

However Sony's consoles department is not the ENTIRETY of Sony corporation, and if I'm not mistaken all of those branches are fast sinking ships unless they can get a big turn around. Whereas Nintendo is only in the videogame making sphere (and Hanafuda cards if you really care about that).

It's actually really troubling to see that Nintendo has exceeded Sony in that regards.

Mainly because investors know that even the the PS4 is doing well now, the console side of things will not be able to hold up the corporation by itself. Not without some serious hacking off.

Well, its kind of because diversification is a weird thing. As bad as it might seem that Sony has multiple branches in the deep negatives, the entire reason there are so many branches is so that it isn't actually that bad when something goes negative.

It may seem like the gaming division would be doing so much better on its own, but if it ever starts to slip then it needs to depend on some of the other branches to level it out, just as those branches are depending on the gaming division lately. Its just crappy luck lately that there are more branches pulling down than up. They have been recovering somewhat though, so things may be looking up.

Not a surprise that Nintendo stock is better at the moment than Sony. It's already been pointed out here that the Playstation brand is the only good part of Sony's business at the moment. Everything else is losing to the likes of Samsung by a large margin.

Plus, the great sales and praise of the newer Nintendo games should have raised their stocks a bit right? Apparently lots of Wii Us were sold in Japan in the last few months, and there is a really good chance there were stronger sales in North America too. Don't forget Pokemon and all the 3DSs that probably sold too.

Oh wait, I forgot, Nintendo still has to go third party because of reasons. :P

EvilRoy:

Dragonbums:
I'm pretty sure if you were to compare game department to game department, at the moment Sony would be worth more.

However Sony's consoles department is not the ENTIRETY of Sony corporation, and if I'm not mistaken all of those branches are fast sinking ships unless they can get a big turn around. Whereas Nintendo is only in the videogame making sphere (and Hanafuda cards if you really care about that).

It's actually really troubling to see that Nintendo has exceeded Sony in that regards.

Mainly because investors know that even the the PS4 is doing well now, the console side of things will not be able to hold up the corporation by itself. Not without some serious hacking off.

Well, its kind of because diversification is a weird thing. As bad as it might seem that Sony has multiple branches in the deep negatives, the entire reason there are so many branches is so that it isn't actually that bad when something goes negative.

It may seem like the gaming division would be doing so much better on its own, but if it ever starts to slip then it needs to depend on some of the other branches to level it out, just as those branches are depending on the gaming division lately. Its just crappy luck lately that there are more branches pulling down than up. They have been recovering somewhat though, so things may be looking up.

The thing is is that it's not just a couple of branches that are doing bad and others are doing stellar. It's that most of the other branches are doing bad, or are losing their presence in their respective industries, with only one branch doing well. A branch- that you must remember, just 3 years ago sunk the entire corporation in a $5billion dollar debt that they only just got out of in the final years of the PS3.

VG_Addict:

Magenera:

Also apparently the Chinese hates Sony and like's Nintendo and Microsoft more, so that also is going to be a factor.

Source? Are there any examples of China hating Sony?

when it comes to "political relations" the two countries "officially" hate each other...with no small amount of historical good reason on the part of the Chinese tbth...BUT...Japan is still one of their big trading partners...hundreds of billions dollars worth of trade per year (Wikipedia states they are actually "the top two-way trading partners"...i assume "in the world")...as one might somewhat expect between the world's second and third-largest economies in close geographical proximity to each other...and when it comes to consumer products and certain aspects of distinctly Asian culture especially amongst the young i would think they are probably as open to buying Japanese products as any of the other nations on the Asian Pacific Rim.

to borrow a phrase "it's all about the Benjamins" ain't it ?..

the one thing i suspect may end up being a wildcard is someone in China may very well just set to creating an indigenous console platform themselves...after all they are just consumer form factor PCs nowadays, the country has 1.3 billion of an indigenous marketplace, it's not like they haven't been making consoles up until now and it's pretty clear MSs console strategy is now broadly similar (ie "'MERICA") only with far less of a "core market" population to take aim at...so the supposed Chinese console market bonanza...may not even end up in the hands of any of the three companies we're used to talking about...

you could see entirely new platforms emerge in China...it's big enough to support them...plural...and the Chinese are just as likely to support/prefer a home grown console as many Americans or Japanese...

in short imo its a mistake (especially in the long term) to see them only as potential importers of this kind of stuff.

Dragonbums:
Snip

The thing is is that it's not just a couple of branches that are doing bad and others are doing stellar. It's that most of the other branches are doing bad, or are losing their presence in their respective industries, with only one branch doing well. A branch- that you must remember, just 3 years ago sunk the entire corporation in a $5billion dollar debt that they only just got out of in the final years of the PS3.[/quote]

True, but if those divisions do start to endanger the company at large they can fulfill their second purpose which is to act as sacrificial lambs. The company would certainly suffer a heavy strike to stock, but it tends to be very recoverable since the lead weight has been removed. Plus the company has its major fallback, the insurance division, which makes the profit responsible for keeping the other divisions from sinking the company.

Sleekit:

you could see entirely new platforms emerge in China...it's big enough to support them...plural.
and the Chinese are just as likely to support/prefer a home grown console as many Americans...

Not to mention the fact that a lot of the consoles are manufactured in Japan that there are sure to be some who took notice of what was in them and could eventually make one of their own. I think that'd be very interesting actually. I also wonder if it'd be available in all of Asia. Mainly because with Nintendo for the longest time couldn't sell their products in other Asian countries (Console ban in Chine, and then South Korea's ban until 1998 and 2004)

Dragonbums:

The thing is is that it's not just a couple of branches that are doing bad and others are doing stellar. It's that most of the other branches are doing bad, or are losing their presence in their respective industries, with only one branch doing well. A branch- that you must remember, just 3 years ago sunk the entire corporation in a $5billion dollar debt that they only just got out of in the final years of the PS3.

Yeah, not exactly the best position to be in. From what I understand, they still plan to cut a few hundred jobs over the year. Layoffs are NEVER good. Basically no part of Sony is able to compete in their respective markets well except for the games division and only having ONE division be profitable is ever good

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