Nintendo had a difficult quarter -- Super Mario not so super anymore?

Nintendo is the clear leader in video-game hardware. Both the Wii and the Nintendo DS have dominated their respective segments. Sony's (NYSE: SNE) PlayStation 3 and Microsoft's (NASDAQ: MSFT) Xbox 360 have been beaten down by the little innovative systems that focus more on innovation and style than their more technologically powerful adversaries.

As we all know, though, the growth story has to stop at some point. Remember when Nintendo was a great stock to hold? Check out the 52-week high on the ADRs. I sometimes can't believe that they actually hit $74 not so long ago. I remember owning the shares when they were priced at the $60 level! I had gotten out at a profit before the slide, I hasten to add.

I so much want to get back in Nintendo at some point, but I can't find a suitable reason to play around with this company, especially when there are better investment ideas out there. For instance, I've been more taken by the price action and overall fundamental thesis behind Microsoft. I recently made a successful trade of the stock. I should quickly point out that buying a position in Microsoft has absolutely nothing to do with the Xbox 360.

I've expressed my reticence about Nintendo many times prior. I'll say the same thing now: the company can only become interesting to me again on a big pullback. The shares haven't done anything for quite a while now. They seem dead. We'll have to see what happens as the company releases more products, as well as how the new Nintendo DSi affects things. For now, I'm avoiding Nintendo.

Disclosure: I don't own any company mentioned; positions can change without notice.