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Nintendo Is Pulling One Foot Out of the Grave
Nintendo is laying the ground for an improved 2015.
Michael Comeau    

This article was originally posted on the Buzz & Banter, where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

I recently wrote a piece about the 2014 E3 video-game conference, focused almost entirely on the battle between the Microsoft (NASDAQ:MSFT) Xbox One and Sony (NYSE:SNE) PlayStation 4.

Subsequently, the troubled Nintendo (OTCMKTS:NTDOY) rolled out its own big guns -- and I like them.

I'm now long Nintendo.

I think this company could be in for a big 2015.

Nintendo of America President and COO Reggie Fils-Aime said yesterday that sales of the Wii U quadrupled after the release of Mario Kart 8 at the end of May.

Is it sustainable? I'm leaning towards yes -- or at least towards the expectation that people will start believing in a comeback.

The Mario Kart franchise is simply enormous. Mario Kart for the Wii sold over 34 million units.

But more importantly, we have reason to be optimistic beyond Mario Kart.

The open-world Zelda game shown at E3, due for release in 2015, could also be a big seller, and Nintendo generated additional buzz with a brief glimpse at a Wii U Starfox game.

The hit Super Smash Bros fighting series is also coming back, with extra novelty value through the addition of Pac-Man as a playable character. The 3DS version will be out in October, with the Wii U's coming this winter.

Nintendo's new cartoonish shooter Splatoon has potential as a sleeper hit, while Mario Maker, which allows players to create their own Mario games, represents a really fun way for Nintendo to capitalize on its biggest franchise.

A potential price cut could serve as an additional catalyst.

Now I'm not actually sure that Nintendo's Wii U sales actually will rebound. But video game stocks move on speculation and anticipation, which means you have to be ahead of shifts in crowd sentiment.

The consensus thinking is that Sony is winning by a wide margin, Microsoft is basically getting by, and Nintendo's got one foot in the grave.

I see that perception shifting based on the coming upgrade of the Wii U's software library, and I want to be in ahead of it. 

And on a related E3 note, I want to add one more point: EA (NASDAQ:EA) may have a monster hit on its hands with Battlefield Hardline, which comes out in October. It looks like a great extension of the Battlefield franchise, with a shift from a military setting to cops and robbers. It's like a Michael Mann movie mashed up with a shooter, and that seems like a brilliant mix.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
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Position in NTDOY
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Nintendo Is Pulling One Foot Out of the Grave
Nintendo is laying the ground for an improved 2015.
Michael Comeau    

This article was originally posted on the Buzz & Banter, where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

I recently wrote a piece about the 2014 E3 video-game conference, focused almost entirely on the battle between the Microsoft (NASDAQ:MSFT) Xbox One and Sony (NYSE:SNE) PlayStation 4.

Subsequently, the troubled Nintendo (OTCMKTS:NTDOY) rolled out its own big guns -- and I like them.

I'm now long Nintendo.

I think this company could be in for a big 2015.

Nintendo of America President and COO Reggie Fils-Aime said yesterday that sales of the Wii U quadrupled after the release of Mario Kart 8 at the end of May.

Is it sustainable? I'm leaning towards yes -- or at least towards the expectation that people will start believing in a comeback.

The Mario Kart franchise is simply enormous. Mario Kart for the Wii sold over 34 million units.

But more importantly, we have reason to be optimistic beyond Mario Kart.

The open-world Zelda game shown at E3, due for release in 2015, could also be a big seller, and Nintendo generated additional buzz with a brief glimpse at a Wii U Starfox game.

The hit Super Smash Bros fighting series is also coming back, with extra novelty value through the addition of Pac-Man as a playable character. The 3DS version will be out in October, with the Wii U's coming this winter.

Nintendo's new cartoonish shooter Splatoon has potential as a sleeper hit, while Mario Maker, which allows players to create their own Mario games, represents a really fun way for Nintendo to capitalize on its biggest franchise.

A potential price cut could serve as an additional catalyst.

Now I'm not actually sure that Nintendo's Wii U sales actually will rebound. But video game stocks move on speculation and anticipation, which means you have to be ahead of shifts in crowd sentiment.

The consensus thinking is that Sony is winning by a wide margin, Microsoft is basically getting by, and Nintendo's got one foot in the grave.

I see that perception shifting based on the coming upgrade of the Wii U's software library, and I want to be in ahead of it. 

And on a related E3 note, I want to add one more point: EA (NASDAQ:EA) may have a monster hit on its hands with Battlefield Hardline, which comes out in October. It looks like a great extension of the Battlefield franchise, with a shift from a military setting to cops and robbers. It's like a Michael Mann movie mashed up with a shooter, and that seems like a brilliant mix.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
Position in NTDOY
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Nintendo Is Pulling One Foot Out of the Grave
Nintendo is laying the ground for an improved 2015.
Michael Comeau    

This article was originally posted on the Buzz & Banter, where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO+.

I recently wrote a piece about the 2014 E3 video-game conference, focused almost entirely on the battle between the Microsoft (NASDAQ:MSFT) Xbox One and Sony (NYSE:SNE) PlayStation 4.

Subsequently, the troubled Nintendo (OTCMKTS:NTDOY) rolled out its own big guns -- and I like them.

I'm now long Nintendo.

I think this company could be in for a big 2015.

Nintendo of America President and COO Reggie Fils-Aime said yesterday that sales of the Wii U quadrupled after the release of Mario Kart 8 at the end of May.

Is it sustainable? I'm leaning towards yes -- or at least towards the expectation that people will start believing in a comeback.

The Mario Kart franchise is simply enormous. Mario Kart for the Wii sold over 34 million units.

But more importantly, we have reason to be optimistic beyond Mario Kart.

The open-world Zelda game shown at E3, due for release in 2015, could also be a big seller, and Nintendo generated additional buzz with a brief glimpse at a Wii U Starfox game.

The hit Super Smash Bros fighting series is also coming back, with extra novelty value through the addition of Pac-Man as a playable character. The 3DS version will be out in October, with the Wii U's coming this winter.

Nintendo's new cartoonish shooter Splatoon has potential as a sleeper hit, while Mario Maker, which allows players to create their own Mario games, represents a really fun way for Nintendo to capitalize on its biggest franchise.

A potential price cut could serve as an additional catalyst.

Now I'm not actually sure that Nintendo's Wii U sales actually will rebound. But video game stocks move on speculation and anticipation, which means you have to be ahead of shifts in crowd sentiment.

The consensus thinking is that Sony is winning by a wide margin, Microsoft is basically getting by, and Nintendo's got one foot in the grave.

I see that perception shifting based on the coming upgrade of the Wii U's software library, and I want to be in ahead of it. 

And on a related E3 note, I want to add one more point: EA (NASDAQ:EA) may have a monster hit on its hands with Battlefield Hardline, which comes out in October. It looks like a great extension of the Battlefield franchise, with a shift from a military setting to cops and robbers. It's like a Michael Mann movie mashed up with a shooter, and that seems like a brilliant mix.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
Position in NTDOY
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
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