Continue reading Will New Apple TV Include Netflix Support?

Will New Apple TV Include Netflix Support? originally appeared on BloggingStocks on Wed, 01 Sep 2010 09:00:00 EST. Please see our terms for use of feeds.

January proved to be a rather difficult month for the video-game world, as evidenced by a greater-than-expected drop in sales during the month. According to the NPD Group, U.S. game sales fell 12% during January. The drop in game sales was expected to total 5%. In addition to this news, hardware sales dropped by 21% during the month.

Reportedly, Nintendo (NTDOY) sold 465,800 units during the month. This total was down more than 30% during January 2009. The Nintendo DS saw sales fall 17% from a year ago to 422,200 units. Nintendo pulled down the hardware segment, as both Sony (SNE) and Microsoft (MSFT) saw sales of their gaming consoles increase.

Continue reading Video Game Sales Drop in January

Video Game Sales Drop in January originally appeared on BloggingStocks on Fri, 12 Feb 2010 12:40:00 EST. Please see our terms for use of feeds.

Continue reading Activision Blizzard releases 'Guitar Hero: Metallica' play list; metalheads drool

Activision Blizzard releases 'Guitar Hero: Metallica' play list; metalheads drool originally appeared on BloggingStocks on Mon, 26 Jan 2009 18:16:00 EST. Please see our terms for use of feeds.

Howard Stringer's turnaround of Sony (NYSE: SNE) is officially over. The first non-Japanese executive to lead the company was hoping to fix what the old rigid culture at the company had broken. It no longer had the leading edge in making innovative consumer electronics. Its gaming platform, the Playstation, was losing ground to rivals. Its studio business was costly, and, in the view of many, poorly run.

Stringer was going to fix all of that, and seemed to have made a modestly good start. Then, the recession mowed him down. Sony will cut 8,000 people in the hope of saving over $1 billion a year. The "downsizing" is 5% of the firm's global workforce.

Analysts will fairly wonder if the jobs might have been saved if Sony had made any real progress on picking up market share for the PS3 and making the game division more profitable. The company was certainly hurt by the falling prices of LCD TVs, which is among Sony's largest businesses.

The fact of the matter is that Springer's renaissance at Sony took too long. By the time the recession hit, he was still in the early innings of trying to make the company successful again. Now, he has been set back, perhaps by several years.

Douglas A. McIntyre is an editor at 247wallst.com.

Sony (SNE) cuts to the bone originally appeared on BloggingStocks on Tue, 09 Dec 2008 08:50:00 EST. Please see our terms for use of feeds.

Sony (SNE) sees operating profit tumble 47% in latest quarter originally appeared on BloggingStocks on Tue, 29 Jul 2008 08:31:00 EST. Please see our terms for use of feeds.

Most Americans are giving their tax rebate to Exxon Mobil (NYSE: XOM). It should hardly be surprising that with oil at around $130 and the prices of most commodities used to make food doubling over the last year, the the money from Uncle Sam will not go for a new PlayStation.

The tax rebate was meant to stimulate the economy. Instead, it may be going to a fairly narrow group of companies including credit card firms and oil behemoths. That was hardly the plan, but, in an odd way, the government's program to get money to the consumer may be fueling inflation, at least in the energy sector.

The more the consumer spends on gas, the more likely it is that gas prices will stay high.

According to The New York Times, "Recent surveys underscore that many households are now too worried about the rising cost of driving and eating to spend freely, even as cash lands in their laps."

It is the law of unintended consequences at work, meaning that money back from the Treasury may do nothing to make the economy better.

Douglas A. McIntyre is an editor at 247wallst.com.

Tax rebates go into the gas tank originally appeared on BloggingStocks on Sun, 01 Jun 2008 11:40:00 EST. Please see our terms for use of feeds.

Anyone who did not think a Microsoft (NASDAQ:MSFT) buyout of Yahoo! (NASDAQ:YHOO) has become less likely should have stopped by the All Things Digital conference. According to Reuters, "Yahoo Inc Chief Executive Jerry Yang said on Wednesday a potential deal with Microsoft has tremendous power, but the software giant appears no longer interested in a full merger."

The leaves Yahoo! management, its board, and takeover artist Carl Icahn in a tough spot. Many analysts believe that without a deal, the Yahoo! shares could drop back near $20, where they traded before the offer from Redmond. Yahoo! currently changes hands at $27.

The news is a sign that Microsoft thinks it can do almost anything on its own, including challenging Google (NASDAQ:GOOG) in the search business. Gates, Ballmer & Co. have the money to get the engineering hands on board to push better search tech, but user loyalty to Google may be so great that even a much better product from Microsoft will not break its rival's hold on the market.

Microsoft has had success exceeding the market's expectations before. No one believed that the company's Xbox could challenge the Sony (NYSE:SNE) PlayStation franchise.

But, search engines are not game consoles and the rules in one game do not necessarily apply in another.

Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 letter.

Microsoft (MSFT) and Yahoo! (YHOO) talk down deal in public originally appeared on BloggingStocks on Thu, 29 May 2008 08:43:00 EST. Please see our terms for use of feeds.

Activision Inc. (NASDAQ: ATVI) doesn't want to let Rock Band have all the fun. According to Reuters, Activision wants to turn its Guitar Hero platform into a truly direct competitor to its colleague. Come the fall, the publisher will release Guitar Hero World Tour, a package that will include a guitar, a microphone, and a drum set. There will be online capability; players will also be able to create their own tunes via a suite of digital-music tools. And all the major platforms from Sony Corporation (ADR) (NYSE: SNE), Microsoft Corporation (NASDAQ: MSFT), and Nintendo Co., Ltd. (OTC: NTDOY) will be getting this game.

Rock Band, which is developed by Viacom, Inc. (NYSE: VIA)'s Harmonix and sold by Electronic Arts (NASDAQ: ERTS), is no longer unique now that Activision has expanded the depth of its famous brand. Indeed, Guitar Hero still thrived even in the face of Viacom's music game, but it looks like Activision is taking no chances; the publisher obviously realizes that, as time goes on and upgrades to Rock Band come along, the Guitar Hero franchise might see eventual erosion of its fan base as the fad matures. Evolution would certainly be justified at this point.

Yet, I am of two minds about this move. On the one side, I can understand why this had to be done. And I can see why it should work out; after all, Activision's brand equity when it comes to this Guitar Hero game is incredible. Seriously, if you don't know, a lot of players out there, both hardcore and casual, love this platform. However, there's another side to me that wonders if traditionalists won't necessarily enjoy the aspect of the additional instruments. Do they add value, or do they now make the brand seem clunky and complicated? On a gut level, I always theorized that those who chose Guitar Hero over Rock Band relished the fact that it was just one guitar. Then again, going back to the brand-equity thing, maybe current players will now want to try out a more complex musical-gaming experience since the Guitar Hero name is attached.

Continue reading Activision wants to shred 'Rock Band' with its new evolution of "Guitar Hero"

Activision wants to shred 'Rock Band' with its new evolution of "Guitar Hero" originally appeared on BloggingStocks on Thu, 22 May 2008 17:01:00 EST. Please see our terms for use of feeds.

In a column in Barron's (subscription required), analyst Todd Greenwald provides a bullish outlook for the video game industry, macroeconomic trends be damned:

We believe that this industry is virtually recession-proof and will be driven almost entirely by the release of new games, and continued hardware sales, rather than any macro-level consumer spending trends.

Last year's momentum has continued into the first half of 2008; year-to-date software sales are up 41% in the U.S., following 34% growth last year. Furthermore, this will likely accelerate in the coming months, driven by the releases of Grand Theft Auto IV, Nintendo's Mario Kart Wii and Wii Fit, and Konami's Metal Gear Solid 4.

I tend to agree with the notion that video games should be pretty recession-resistant -- they just aren't that expensive for the amount of time that so many young, male hardcore gamers spend with them. There's an argument to be made that a $50 video game actually provides a positive return on investment to the consumer because a night at home playing PlayStation in your underwear is cheaper than a night out on the town.

But one word of caution: Much of the growth, especially in more casual games like the Nintendo Wii, is being driven by a growing number of non-hardcore gamers. People who don't consider video games their main hobby may be more likely to give them up if things get tight.

Another problem to keep in mind: the Associated Press recently reported that teens are having a tough time procuring summer work in light of the struggling economy. That means less spending money for video games. But teen-oriented fashion retailers are more likely to be the victims of that.

Is the video game industry recession-proof? originally appeared on BloggingStocks on Sun, 04 May 2008 18:10:00 EST. Please see our terms for use of feeds.

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

The Nintendo Ltd. (OTC: NTDOY) Wii and Sony Corp. (NYSE: SNE) PlayStation 3 were released within two weeks of each other, in November of 2006, as the latter two of the three "seventh generation" home video-game consoles, with the Microsoft Corp. (NASDAQ: MSFT) Xbox 360, released a year earlier, being the third. Now, a year and a half later, let's review how the two gaming machines stand up to each other.

Out of the gate, the Wii was a hit. It broke sales records, led by its revolutionary controller and Wii Sports, a silly mini-game compilation that came packaged with the console. The focus of the system was more on its unique game play, which Nintendo hoped would draw casual gamers, than its intense graphics abilities. The gamble paid off, as the Wii surpassed the Xbox 360, which was released earlier, as the top-selling console in September 2007.

The PlayStation 3 had no such luck at the start. The console's strategy, like the Xbox 360's, revolved around graphics, which made the system more expensive -- $499 for the basic PS3 at launch was double the Wii's $249 launch price. Sony also decided to intertwine the fate of the console with that of the next generation DVD technology the company backed, the Blu-ray disc. However, the release of the PS3 slightly predated the high-definition craze, and so having a Blu-ray player was not an important enough selling point to help the console at launch. Another issue for the PS3 at launch was the lack of a cornerstone franchise for the system. Xbox had Halo, and Nintendo, with its deep video-game roots, had Zelda, Mario, and Metroid. Without a "must buy" game or franchise, Sony was left out, and its PlayStations stayed on the shelves.

Continue reading Battle of the Brands: Nintendo Wii vs. Sony PlayStation 3

Battle of the Brands: Nintendo Wii vs. Sony PlayStation 3 originally appeared on BloggingStocks on Sat, 03 May 2008 18:40:00 EST. Please see our terms for use of feeds.

Strong Wii sales help power Nintendo earnings originally appeared on BloggingStocks on Thu, 24 Jan 2008 17:02:00 EST. Please see our terms for use of feeds.

Here's a sure sign that a product is a hit: a market develops for call options on it. People actually fork over money for the right to buy something.

According to CNBC, that has happened with the Nintendo Co., Ltd (ADR) (OTC: NTDOY) Wii: "Here's the m.o.: shoppers get wind of when a Wii shipment is due to arrive, either by greasing a store manager, or by watching ads carefully, and begin lining up hours before the store opens. A store employee will then come out, hand out tickets or numbered placeholders to keep things orderly, and then the buying and selling begins."

Those tickets to buy Wii's can, according a Best Buy employee interviewed by CNBC, fetch $300-$1000. The ticket is only good for the first few hours the store is open.

To make it more interesting, some people buy the "options," acquire the Wii's ... and then list them on eBay.

For years to come, the Nintendo Wii will probably be the video game success story by which all other future consoles are measured. Look for other companies to copy Wii in the next few years with more user-friendly, less arcane, games, and also possibly exercise components.

The video game industry appears to be dividing into two groups: casual gamers who enjoy the fun of the Wii, and hardcore gamers who want graphics like Sony Corp. (ADR) (NYSE: SNE)'s PlayStation 3.

As some point, I think companies could actually introduce two systems during each product cycle -- one for each market.

Nintendo Wii gets its own derivatives market originally appeared on BloggingStocks on Fri, 21 Dec 2007 18:52:00 EST. Please see our terms for use of feeds.

In some ways, Wall Street should be surprised that it did not happen sooner. Apple (NASDAQ: AAPL) is talking to cellular carriers about launching the iPhone in Japan. In the country that created the Walkman and PlayStation, it would seem only logical that a tech gadget like the iPhone would be a huge success.

Japan is known for its obsession with cellphones. It is a large market for text applications and ringtones.

The Wall Street Journal writes that Apple is in talks with NTT DoCoMo (NYSE: DCM), the largest carrier in Japan, and Softbank. The Japanese market has "nearly 100 million mobile-phone users who buy new phones every two years on average. Japanese consumers are also already used to shelling out hundreds of dollars for expensive phones with advanced capabilities such as digital television, camera and music," according to the paper.

Continue reading Apple (AAPL) shops iPhone in Japan

Apple (AAPL) shops iPhone in Japan originally appeared on BloggingStocks on Tue, 18 Dec 2007 08:53:00 EST. Please see our terms for use of feeds.

Sony says consumer electronics remain strong - How? originally appeared on BloggingStocks on Tue, 11 Dec 2007 18:00:00 EST. Please see our terms for use of feeds.

Sony (NYSE: SNE) has not had an easy time selling the PlayStation 3, so the company will now focus on making the game console a networking hub connecting the internet and electronics devices in the home.

According to Reuters, "The world's second-largest consumer electronics maker will hook up the PS3 with its PlayStation Portable console online before extending the links to other products such as mobile phones." The PS3 will also be a connection to flat panel screens in the home.

In some ways, Sony is using its leverage with it popular flat panel TVs to help sell the PS3 as a conduit into the larger video screens.

If it sounds like a complicated, backwards strategy, it may be because it is. The company's push to use its consumer electronics to sell the PS3 as the "brains" of the living room would only appear to be something that will alienate people who have no interest in a home entertainment "system." That would probably be 90% of the people who like to watch TV or play video games. At least those activities are easy to understand. Nothing to plug together.

Douglas A. McIntyre is an editor at 247wallst.com.

Sony (SNE) pushing PS3 as home network hub originally appeared on BloggingStocks on Tue, 11 Dec 2007 10:02:00 EST. Please see our terms for use of feeds.

Sony PlayStation 3 outsells Nintendo Wii in Japan in November originally appeared on BloggingStocks on Fri, 30 Nov 2007 11:16:00 EST. Please see our terms for use of feeds.

Sony, Microsoft will benefit from Wii shortage originally appeared on BloggingStocks on Tue, 20 Nov 2007 15:35:00 EST. Please see our terms for use of feeds.

This post is part of our Hottest Products of 2007 feature. Also check out our other Hottest Products of 2007 posts and let us know which product you think is the greatest thing since sliced bread.

Nintendo (OTC: NTDOY)'s Wii gaming console was a non-contender -- an underdog -- this time last year. The gaming console with the funny name was set to launch with little fanfare compared to the Sony Corp. (NYSE: SNE) PlayStation 3 or Microsoft (NASDAQ: MSFT)'s Xbox 360, launched a year earlier, but the Wii caught eyes because it was priced at only $250, compared to $600 for the PlayStation 3 and $400 for the Xbox 360. But then again, it had inferior graphics and other downgrades. My, my -- how customers didn't care about its competitors' touted features and other fluff.

Why not, you ask? The Nintendo Wii featured the most innovative and immersive gameplay, regardless of the hi-def video or audio output and inferior graphics. Nintendo figured out that consumers wanted a newer kind of gameplay -- not photo-realistic blood and guts. As an aside, they designed the initial games and many others to get game players off those duffs and onto their feet, wildly slinging those Wii-motes through the air -- swatting tennis balls, slaying dragons and driving cars. The mass, mainstream consumer loved it, and so the age of Wii was born.

Continue reading Hottest Products of 2007: Nintendo Wii sweeps gamers ON their feet

Hottest Products of 2007: Nintendo Wii sweeps gamers ON their feet originally appeared on BloggingStocks on Tue, 20 Nov 2007 10:28:00 EST. Please see our terms for use of feeds.

The boy who loved PlayStation more than he did his parents originally appeared on BloggingStocks on Tue, 06 Nov 2007 13:20:00 EST. Please see our terms for use of feeds.

Halo 3 may have done better than expected, but it also had a very long tail that pulled up sales of the Microsoft (NASDAQ: MSFT) Xbox 360.

NPD, the research firm, reported that Microsoft sold 528,000 consoles in September. The FT writes that NPD said "3.3m US copies of Halo 3 were sold in the five-week retail period, despite the game only being launched on September 25."

The Nintendo Wii sold 501,000 units, also a monthly record. But the Sony (NYSE: SNE) PS3 sold only 119,000.

While Xbox 360 sales almost doubled from August, and Wii sales were up 24%, the PS3 number was actually a slight drop.

The September headline may be about Halo 3 and Xbox 360 sales, but most of the story has to do with Sony. After years of dominating the video game business with PlayStation 2, its new version is widely considered a failure. It is unclear whether a recent price cut can change the momentum as the holiday season gets into full swing.

It may be that the gaming unit, which drove Sony's earnings for so long, will never do so again and that the big Japanese company will have to rely on TV and consumer electronics sales along with the results from its movie studio.

The PS3 may be doomed.

Douglas A. McIntyre is a partner at 247wallst.com.

'Halo 3' drives spike in Xbox sales; can Sony recover? originally appeared on BloggingStocks on Fri, 19 Oct 2007 06:50:00 EST. Please see our terms for use of feeds.