Here's a strange story for the electronics industry. A struggling games machine maker is now worth more than one of the strongest brands in the consumer electronics industry. That's right, Nintendo has overtaken Sony - maker not only of the Playstation, but TVs, audio, PCs etc etc - in market capitalisation on the strength of the Wii games machine to be come one of the top ten most valuable companies in Japan.
The Wii is a great design and a lesson in providing what people want rather than the latest technology, but Nintendo is vulnerable to a downturn through being a one-trick company.
Nintendo is now aiming to overtake Sony's 120m-selling PlayStation2 - Nintendo sold 5.8 million units of the Wii by this March, and aims to sell another 14 million during the current business year to March 2008, which makes 20m this year, so it will take four to five years to beat the PS2. That's a long way off, and competition is fierce and Nintendo still hasn't sorted out it's production scheduling problems.
This just goes to show, rightly or wrongly, the madness and emotion of the stock market!
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