Originally posted by: Lothar
Originally posted by: thomsbrain
Buffet would give you the opposite advice: Buy Sony, not Nintendo. They have a solid business model, a solid product, and are merely waiting for a few killer game titles, which are on the way. Nintendo has already made its gain, and the best you could hope for is that it won't fall. There aren't any huge gains to be made there in the next few years. Investing based purely on retrospective success is not a wise plan.
Absolutely not. Buffett wouldn't give that advice.
PS3 is going to lose console gaming market share anyway you see it. There's no stopping it.
Nintendo has nothing to lose(their market share was low during the Gamecube era) and everything to gain.
Nintendo is selling their Wii consoles at a profit, and therefore will have the upperhand in any future price cuts. Sony's gaming department on the other hand is hemorrhaging cash selling consoles at a loss of $200+ (according to some industrial analysts).
There won't be any new console product (PS4, Nintendo *.*) offered by either manufacturer for the next 3 years at least and I somehow do not see the PS3 overtaking the Nintendo Wii console in sales for the next 3 years.
If I was to invest in Sony stock now, it certainly wouldn't be because of their PS3/gaming department...
While it's pretty clear that the OP is buying Nintendo because of retrospective success, I chose to buy Nintendo in early March based on their business model(giving gamers exactly what they want and not forcing useless crap down their throats, cheaper priced console, making a profit on each console sold and not hemorrhaging cash) and their products(Zelda, Metroid, Smash Bros.)