If the Wii were still cool, Nintendo (OTC: NTDOY) wouldn't have had to take a heavy hand to its full-year earnings forecast. The company's profit fell 52% year-over-year for the past quarter, due in large part to a decline in the game's popularity. Demand has slipped, with Sony (NYSE: SNE) and Microsoft (NASDAQ: MSFT) gaining ground with the core market of zealous gamers. Also, it's seen its position eroded by Apple's (NASDAQ: AAPL) iPhone, which is picking up some momentum as a gaming platform.

Nintendo's Q3 operating profit dropped to JPY64 billion ($709 million), falling far short of the analyst estimate of JPY90 billion. For the year ending March 2010, the company has chopped its forecast to JPY370 billion, far lower than the analyst expectation of JPY442.8 billion.

After dominating the gaming industry for the past three years, Nintendo's Wii gave up its position in the top spot to Sony's PlayStation 3 last month. The company has also been hurt by an increase in the value of the yen, which has hurt all Japanese exporters. Yet, even by local standards, Nintendo isn't measuring up. Its stock price is down 28% this year, compared to a 14% increase in the Nikkei 225.

Wii dethroned, Nintendo profit halved originally appeared on BloggingStocks on Thu, 29 Oct 2009 14:50:00 EST. Please see our terms for use of feeds.

You got to hand it to Netflix Inc. (NASDAQ: NFLX). At a time when movie rental houses -- chief among them, rival Blockbuster Inc. (NYSE: BBI) -- are struggling to keep their doors open, Netflix is prospering, rolling out new initiatives and finding new ways for video-hungry consumers to watch movies.

On Thursday, co-founder and CEO Reed Hastings told investors on a conference call that the company will soon partner with another consumer-electronics maker to make streaming video available on more devices. That's on top of deals Netflix has already struck with Microsoft Corp. (NASDAQ: MSFT) and its Xbox, which expires next month, and Best Buy Inc. (NYSE: BBY), with its line of Insignia brand Blu-Ray disc players.

Continue reading On an earnings roll, Netflix eyes streaming video market as new frontier

On an earnings roll, Netflix eyes streaming video market as new frontier originally appeared on BloggingStocks on Sun, 25 Oct 2009 15:40:00 EST. Please see our terms for use of feeds.

So much for the notion that video game sales would turn around in August. Slumping sales pushed the slide for video game sales to six straight months. During August, 15% fewer games were sold than a year earlier, and the drop was more than industry analysts expected.

Just because the overall sales dropped, it doesn't mean that some companies didn't turn in a good month. Sony (NYSE: SNE) saw sales increase, thanks to the company's decision to slash the price of its wildly popular PlayStation 3.

Continue reading Video game sales fall for a sixth straight month

Video game sales fall for a sixth straight month originally appeared on BloggingStocks on Fri, 11 Sep 2009 08:30:00 EST. Please see our terms for use of feeds.

So you've heard the news I'm sure. Microsoft Corporation (NASDAQ: MSFT) is not standing still in the video-game wars. It recently reduced the price of the Xbox 360 Elite system by $100. We now have parity between an Xbox 360 unit and a Sony Corporation (NYSE: SNE) PlayStation 3 console.

It's going to be interesting to see how hardware sales perform in the coming months. Intuitively, one would have to expect a bump in the number of units sold for both companies. But which one will win out?

Continue reading Microsoft, Sony, and the cheaper Xbox 360

Microsoft, Sony, and the cheaper Xbox 360 originally appeared on BloggingStocks on Fri, 28 Aug 2009 17:30:00 EST. Please see our terms for use of feeds.

Well, it had to happen sometime. Nothing lasts forever, right? Nintendo (OTC: NTDOY) and its fabulous Wii system are no longer hot. To be certain, the Wii is still very, very popular. But from an investing/trading standpoint, you've got to sit up and take notice of the story and highlight not only how it's changed, but how it may change in the near future.

According to Bloomberg, Nintendo's top line decreased 40%, while the profit line tumbled a little over 60%. The Wii unfortunately took a huge hit to its momentum: sales of the console, which competes with Sony's (NYSE: SNE) PlayStation 3 and Microsoft's (NASDAQ: MSFT) Xbox 360, plunged 57% in terms of units. Besides issues relating to the fad and its possible death, the yen, as expected, also had an effect on Nintendo's prospects.

Continue reading Nintendo and the Wii have tough quarter -- should investors stay away?

Nintendo and the Wii have tough quarter -- should investors stay away? originally appeared on BloggingStocks on Sat, 01 Aug 2009 13:40:00 EST. Please see our terms for use of feeds.

I was looking around today for a stock to buy. I came up empty-handed. One of my ideas was Activision Blizzard (NASDAQ: ATVI). I was intrigued this week by reports that said the company wants to have the launch to end all launches for the next Call of Duty title. Quite frankly, I think there's a chance the company will succeed with this. So, naturally, my thoughts turned to shares of Activision Blizzard as a possible buy candidate. Although I already own the stock in a longer-term, taxed portfolio, I wanted a trade for my Roth IRA.

Well, I couldn't buy the company. It's up today (3% at the time of this writing), and I do not want to buy any stock when it's up. Not now, at any rate. The market has come too far too fast, in my opinion, and I want to trade carefully. But, while looking at Activision Blizzard, I came across this article from Ben Kuchera over at Ars Technica. He discusses comments made by the publisher's CEO, Bobby Kotick, on Sony Corporation (NYSE: SNE) and its PlayStation platforms.

Continue reading Activision Blizzard CEO Bobby Kotick needs to tone down rhetoric

Activision Blizzard CEO Bobby Kotick needs to tone down rhetoric originally appeared on BloggingStocks on Fri, 19 Jun 2009 17:20:00 EST. Please see our terms for use of feeds.

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.

Continue reading Will a new Mario game help Nintendo?

Will a new Mario game help Nintendo? originally appeared on BloggingStocks on Fri, 05 Jun 2009 18:30:00 EST. Please see our terms for use of feeds.

The news flow is abuzz this week with stats about Microsoft Corporation (NASDAQ: MSFT) and its Xbox 360 console. According to reports, the company has sold 30 million units of the gaming hardware around the world. Nintendo Co., Ltd. (OTC: NTDOY) is still in first place with 50 million Wii consoles sold. And Sony Corporation (NYSE: SNE)? Well, the PlayStation 3 is decidedly third with roughly 22 million systems moved through retail channels. And don't give me that Xbox-360-had-a-year-over-Sony excuse. Doesn't matter. Microsoft has so far played it well.

But I'd like to see Microsoft do even better when it comes to the Xbox 360. I think, out of all the investments Microsoft makes that are outside of the core operating system asset, the Xbox 360 is the one with the most potential promise.

Continue reading Microsoft does well with Xbox 360, but needs to try harder

Microsoft does well with Xbox 360, but needs to try harder originally appeared on BloggingStocks on Fri, 29 May 2009 18:40:00 EST. Please see our terms for use of feeds.

The news continues to be bad for Nintendo (OTC: NTDOY) shareholders. The Wii is slowing down. While it remains a powerful force in gaming hardware, it's just not as compelling in terms of sales as it used to be.

Bloomberg tells the tale. The data for April sales show that the Wii sold less than half as many consoles in the U.S. this year as compared to April of 2008. Last month, the Wii moved 340,000 units. A year ago, the Wii sold over 700,000 units. That's a big difference. Now, don't get to thinking that Nintendo has now given up its crown. The Wii still outsells both the Sony (NYSE: SNE) PlayStation 3 and Microsoft's (NASDAQ: MSFT) Xbox 360 in domestic locations.

Continue reading Nintendo Wii has tough April -- will console be getting cheaper?

Nintendo Wii has tough April -- will console be getting cheaper? originally appeared on BloggingStocks on Sun, 24 May 2009 13:40:00 EST. Please see our terms for use of feeds.

Activision Blizzard (NASDAQ: ATVI) has a lot of great franchises. Guitar Hero, Call of Duty, World of Warcraft ... these brands are very valuable to shareholders. But there's one franchise in particular that could use a little help in the buzz department. And according to a recent press release from the publisher, that's exactly what it will be getting via a fresh reboot.

The Tony Hawk skateboarding games have been very popular. Unfortunately, you don't hear about the franchise that much anymore (well, I don't, at least). All we hear about is the Guitar Hero series of games. As a shareholder in Activision Blizzard, I'm hoping that this situation will soon change for the better. When Tony Hawk: RIDE is released this fall, it will use a special skateboard controller that will supposedly make the gaming experience completely new and unquestionably exciting.

Continue reading Will a new Tony Hawk game help Activision Blizzard's stock?

Will a new Tony Hawk game help Activision Blizzard's stock? originally appeared on BloggingStocks on Tue, 19 May 2009 08:00:00 EST. Please see our terms for use of feeds.

Activision Blizzard (NASDAQ: ATVI), a video-game publisher that competes with Electronic Arts (NASDAQ: ERTS), THQ (NASDAQ: THQI), and Take-Two Interactive (NASDAQ: TTWO), reported some cool first-quarter numbers on Thursday after the bell. On an adjusted basis, the company earned 8 cents per share. According to analysts, Activision Blizzard was only supposed to do around 5 cents per share.

Not only was the bottom line solid, but revenues on an adjusted basis also came in ahead of expectations. And you can thank the usual suspects for powering up the quarter. You've got Call of Duty. You've got Guitar Hero. You've got World of Warcraft. These best-of-breed franchises are selling a lot of copies on Sony's (NYSE: SNE) PlayStation 3, Microsoft's (NASDAQ: MSFT) Xbox 360, and Nintendo's (OTC: NTDOY) Wii.

Continue reading Activision Blizzard beats in Q1 -- is it still a strong investment idea?

Activision Blizzard beats in Q1 -- is it still a strong investment idea? originally appeared on BloggingStocks on Fri, 08 May 2009 09:00:00 EST. Please see our terms for use of feeds.

This source says that Nintendo's quarterly operating income plunged more than 40%. The forecast for the year was likewise troubling. Nintendo believes its profit may drop 12%. This guidance was worse than expected. We've talked here before about Nintendo perhaps seeing a slowdown in the Wii fad. We've also discussed the issue of currency pressures. According to this article, the problems caused by the yen might be abating somewhat.

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

Nintendo had a difficult quarter -- Super Mario not so super anymore? originally appeared on BloggingStocks on Thu, 07 May 2009 14:30:00 EST. Please see our terms for use of feeds.

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!

Continue reading Video game sales off in March -- should investors panic?

Video game sales off in March -- should investors panic? originally appeared on BloggingStocks on Fri, 17 Apr 2009 10:40:00 EST. Please see our terms for use of feeds.

GameStop (NYSE: GME) is probably the best friend to gamers who fall somewhere in between the casual and hardcore demographic. That's because CEO Dan DeMatteo has been quoted in reports as being very desirous of a price cut for the Sony (NYSE: SNE) PlayStation 3. If I read between the lines a bit, I get the feeling as if he almost wants to demand that Sony do something about its high-priced machine.

Thing is, though, he isn't in Sony's corporate shoes. Cutting the price of the PlayStation 3 is an event that I think is sure to come to pass in the next few months, but it's going to be very difficult on the company's bottom line.

Continue reading GameStop wants Sony to play ball -- will Sony do it?

GameStop wants Sony to play ball -- will Sony do it? originally appeared on BloggingStocks on Thu, 16 Apr 2009 11:00:00 EST. Please see our terms for use of feeds.

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.

Continue reading Nintendo Wii having a tough time in Japan

Nintendo Wii having a tough time in Japan originally appeared on BloggingStocks on Fri, 10 Apr 2009 10:00:00 EST. Please see our terms for use of feeds.

I guess Sony (NYSE: SNE) likes to concentrate on things that have worked. The company recently announced a price cut for its PlayStation 2 system. The old price: $129.99. The new price: $99.99. Yes, the wonderful $99.99 level. It's a number that draws the attention of consumers and practically dares them not to be interested.

You can bet that a lot of casual gamers will be looking to buy the console now. I know what you're thinking: Who the heck doesn't already own a PlayStation 2 by this point? Well, I'm sure there are quite a few people out there who don't have one installed in their living room.

Plus, you have to remember that there will be many parents out there who might want to pick up one of the consoles for their younger kids. Little ones who may just be starting their video-gaming lives. Why waste several hundred dollars on next-generation technology when old-generation technology will suffice for such a demographic?

Continue reading Sony still behind the PlayStation 2 -- what about PlayStation 3?

Sony still behind the PlayStation 2 -- what about PlayStation 3? originally appeared on BloggingStocks on Wed, 01 Apr 2009 11:00:00 EST. Please see our terms for use of feeds.

GameStop (NYSE: GME) reported earnings for Q4 and the full fiscal year on Thursday. As expected, they were very good. Why shouldn't they be? The country is in love with video games, and systems by Sony (NYSE: SNE), Microsoft (NASDAQ: MSFT), and Nintendo (OTC: NTDOY) are keeping a lot of people from all age groups occupied. Including myself. I just recently completed Resident Evil 5 for the PlayStation 3.

Continue reading GameStop issues a good report, but stock sells off -- buy it?

GameStop issues a good report, but stock sells off -- buy it? originally appeared on BloggingStocks on Thu, 26 Mar 2009 14:50:00 EST. Please see our terms for use of feeds.

The video-game industry had another good month.

Sales figures for February show that the Nintendo (OTC: NTDOY) Wii sold the most consoles (like anyone was surprised by that?). Over 750,000 units were purchased, according to statistics from research firm NPD.

The Xbox 360, which is manufactured by Microsoft (NASDAQ: MSFT), sold over 390,000 consoles. And then we have poor Sony (NYSE: SNE), which makes the PlayStation 3. That system found a little over 275,000 willing buyers.

Continue reading Video games continue performing, but there is one problem

Video games continue performing, but there is one problem originally appeared on BloggingStocks on Fri, 20 Mar 2009 11:50:00 EST. Please see our terms for use of feeds.

Nintendo (OTC: NTDOY) is one of those stocks that you just want to own but are not sure that you should own. How many times have you heard that the Wii is selling like hotcakes and that the company is beating the heck out of Sony's (NYSE: SNE) PlayStation 3 and Microsoft's (NASDAQ: MSFT) Xbox 360?

You've heard it a lot. Plus, you may even know how fun the Wii is from personal experience. Maybe you own one and are right now trying to finish the last level of Wario Land: Shake It!. And even if you don't own one, chances are one of your friends does.

Continue reading Is Nintendo overvalued?

Is Nintendo overvalued? originally appeared on BloggingStocks on Thu, 19 Mar 2009 09:00:00 EST. Please see our terms for use of feeds.

Boy, I'll tell you, owning Activision Blizzard (NASDAQ: ATVI) has been tough lately. I love the company's prospects. It's got great franchises: Call of Duty, Guitar Hero, World of Warcraft. It's doing better than rivals Electronic Arts (NASDAQ: ERTS) and THQ (NASDAQ: THQI). But the stock has been hitting a lot of technical resistance. Not only that, but CEO Bobby Kotick recently sold a bunch of shares (over a million, actually).

Well, in terms of that insider sale, we can all relax. Basically, Kotick was exercising options that were set to expire relatively soon, says Barron's. That accounted for one million shares. Now, he did also sell over 240,000 shares that were stored in a trust. The mitigating factor here is that Kotick operates under restrictions as to when he can and cannot sell stock. So, in an overall sense, we can give him a pass on this one. Silicon Alley Insider supports this sentiment, and talks about another insider's sale in similar terms.

Continue reading Activision Blizzard: Great company, but is it heading lower short-term?

Activision Blizzard: Great company, but is it heading lower short-term? originally appeared on BloggingStocks on Sat, 14 Mar 2009 14:40:00 EST. Please see our terms for use of feeds.