Investors in video-game stocks might end up with a case of a sour stomach after digesting the latest domestic sales figures from research firm NPD. According to Reuters, overall video-game revenues in March dropped 17% on a year-over-year basis. Indeed, it's not something that shareholders of Sony (NYSE: SNE), Nintendo (OTC: NTDOY), or Microsoft (NASDAQ: MSFT) want to see.

Shareholders of Nintendo, however, will be glad to know that their company once again dominated the charts. The Wii sold over 600,000 consoles. Xbox 360 sold over 300,000 units, and PlayStation 3 moved over 200,000 systems. As for the PlayStation 3, well, it's frustrating statistics like these that are causing video-game execs to publicly call on Sony to do something!

Has the Nintendo (OTC: NTDOY) Wii peaked in Japan? Has it peaked period? It depends on who you ask, but if you ask Nintendo's CEO, the answer could be "yes."

There has been a lot of coverage and commentary about the sales drop that the Wii experienced in Japan last month. According to this source, the The Wii sold 63% fewer units on a year-over-year basis for a five-week period ending March 29.

Nintendo (OTC: NTDOY) is simply on fire. Well, the stock might not be exactly, but according to a self-congratulatory press release, the Wii sold 10 million units in the United States in 2008. That, says Nintendo, has never been done before in a single year. The DS handheld system moved 9.95 million units in '08. Sony (NYSE: SNE) and Microsoft (NASDAQ: MSFT) might as well forget about it. Well, that might be exaggeration, but certainly the PlayStation 3 and the Xbox 360 have found it difficult to attract as many buyers. Here's a great source that lists all the hardware-sales states for '08 and the stats for each console's total sales since release.

It really is amazing to see that Sony has sold only 6.9 million PlayStation 3 consoles over its lifetime in the U.S. while Nintendo has sold more than 17 million Wii players! The question now is, how long can the Nintendo Wii party continue? Oh, I know it'll be strong in '09, and the safe bet is that it'll be number-one again. But from an investor viewpoint, is Nintendo a buy on this news? Has the Wii peaked, in other words? We've got some pretty strong negative-macro headwinds out there. Jobs continue to be lost, consumer confidence is in the abyss, etc. The bad news flow is astounding. Will it affect Nintendo's new year? Well, one interesting product on the way is the Nintendo DSi, which will have two cameras and larger screens. That should propel interest in the Nintendo brand (the release date has not been set, however).

Nintendo (OTC: NTDOY) has had incredible success with its Nintendo DS hand-held gaming device. Sony's (NYSE: SNE) PSP just doesn't have the same heat. And now, the DS is getting an upgrade. It's to be called the Nintendo DSi. The new version is going to have a camera and an SD slot. You'll be able to play music on it. The system will debut in Japan on November 1. For a look at the specs, and a comparison chart that includes the Apple (NASDAQ: AAPL) iPhone, check out this item at Joystiq.com. In terms of North American availability, it has been reported that it will be released in this territory sometime in 2009.

So, what does this mean for those who may own shares of Nintendo? Well, in case you haven't noticed, the price of the ADR's are sitting a little too close to a 52-week low. And quite honestly, I think they're going lower. The reason I think they're going lower is exactly the reason you think it is: the market for equities is awful. The financial crisis has become a global-sized blob, consuming everything in its path. It's a shame, too, because I think Nintendo has a decent shot at doing well with the Nintendo DSi. Even if it does, though, there's no way anyone could say "buy Nintendo now" ahead of the roll-out since the technicals on the stock, and for the market indexes at large, aren't too pretty.

Nintendo closed at $46.26 on Thursday. The 52-week low is $45.80. The shares are in bear mode for certain. I was really hoping to have an excuse to dive back in for a holiday trade. Now, that hope is deader than a mortgage-laden financial stock. Longer-term, I think Nintendo will do just fine as an investment vehicle. But, you'll be waiting a while, I'm afraid. And even if you want to buy for a long-term portfolio, like I say, you'd probably do well to remain patient for a lower entry price. How low do I think it's going? Below $40 looks to be a given, but I wouldn't be surprised to see Nintendo's ADR's dip under $30 at some point. Now that would be one heck of a compelling price, wouldn't it? All depends, of course, on what the macro situation is at the time...

Disclosure: I don't own any company mentioned; positions can change at any time.