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Will a new Mario game help Nintendo?

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Earlier in the week, I discussed Sony Corporation's (NYSE: SNE) new PSP system that is set to arrive in the fall. It didn't make me want to buy the stock. And I don't think the Nintendo DS has anything to worry about.

Now, I'd like to mention a smart move by Nintendo (OTC: NTDOY). According to reports, Nintendo is programming a new Super Mario Bros. adventure for the Wii. What's really cool about it is the fact that it isn't 3D. Now, don't get me wrong, there is nothing wrong with 3D games. But I always think the idea of returning Mario to his 2D roots is a good one. That kind of environment is where Mario really shines; 2D is in the plumber's DNA, believe me.


Now, I'm sure most of you know that there is already a Super Mario Bros. on the Nintendo DS platform that returned the franchise to its 2D roots. And I'm sure most of you will agree that the game is not only fun and neat, but that it has been a big success for Nintendo.

The video-game giant isn't doing a Wii version of Mario just to sell a bunch of software to existing Wii owners. No, the company is hoping that this title will drive sales of the system. Indeed, the demand for Wii could be waning at this point. Sure, the Wii still holds its own against the PlayStation 3 and Microsoft Corporation's (NASDAQ: MSFT) Xbox 360, but there's no reason not to give the console a new push. Anything that might jumpstart momentum again is welcome.

Question is, will this new 2D Mario adventure do the trick? Hard to say. Remember that the Wii's brand equity is centered, in large part, on the casual gamer. Mario is not for casual gamers.

Now, the new version of the Wii Fit will probably generate a larger benefit. Now, I'm not so sure that, by strict definition, a casual gamer would fall in love with the Wii Fit. You obviously can't be 100% casual about the exercise system if you want to derive a health advantage from it. But the Wii Fit can absolutely be considered counter-programming to the hardcore gamer. It has reaped great success in attracting an older, non-hardcore female demographic to the Wii.

I think the new Mario game will be a positive catalyst for the Wii, but I do think that the Wii Fit holds more promise in terms of pushing sales. We'll have to see what eventually happens, but I am still not encouraged enough to buy Nintendo at the moment. The announcement of the company's video-game slate doesn't change the story in regard to the Wii sales trend, and it doesn't alter reality when it comes to the price action of Nintendo's ADRs.

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

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Last updated: November 10, 2009: 10:39 PM

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