Using information we’ve known about for at least a week if not more, Motley Fool writer Tim Beyers lays down an optimistic outlook for Wii’s chances this fall. And yes, I’m being a snarky elitist by saying that; this is a blog after all, so it comes with the territory.
Beyers points to a recent report about Atari, and how the developer was shelving PS3 development until 2007 due to complexity issues with the
console computer’s hardware. I’m not too sure Atari is that accurate an indicator of any system’s success or failure, but the fact that other developers have on and off the record said PS3 is difficult to develop for makes this worth a bit more weight.
Beyers, being the financial writer that he is, also delves into scarier depths where I dare not tread by using “numbers” and “market predictions” to encourage readers with far more coin that I to buy Nintendo stock. “So does that make Nintendo’s stock a screaming buy? Maybe. The last comparable boom period for which data is available is 2001, when Nintendo released the GameBoy Advance and the ultimately unsuccessful GameCube. Back then, the shares traded for an enterprise value of 4.4 times revenue, a price of 3.6 times book value, and 38 times earnings, according to Capital IQ. Today, the House of Mario trades for an enterprise value of 3.2 times sales, a price of 2.4 times book value, and 23 times earnings — enough of a gap to indicate a potential discount. Color me intrigued.”
Might as well have been in Japanese Tim, but I like your style. Wii, for the win!