Nintendo briefly makes Top 10 list

  • Business
  • Tuesday, 26 Jun 2007

TOKYO: Nintendo Co Ltd briefly zipped past Sony Corp in market capitalisation yesterday to become one of Japan's 10 most valuable companies as it elbows the PlayStation maker out of its decade-long dominance of the game industry. 

Nintendo joined global household names such as Toyota Motor Corp, Honda Motor Co and Canon Inc on the Top 10 list before its shares erased earlier gains and ended the day lower. 

The Kyoto-based company finished in the 11th place by market value, just above Panasonic maker Matsushita Electric Industrial Co and below Sony. 

“It is becoming quite clear that Nintendo is taking back its market share from Sony in the console market while well defending its stronghold on portable games,” Mizuho Securities analyst Takeshi Koyama said. 

Nintendo's Wii game console has outsold Sony's PlayStation 3 by three to one in Japan and by more than two to one in the United States so far this year, according to game magazine publisher Enterbrain and research firm NPD. 

Demand for its DS handheld game players also far outstripped that for Sony's PlayStation Portable

Nintendo's shares rose as much as 46,350 yen, a record high, in the morning session, boosting its market value to 6.57 trillion yen (US$53bil) and narrowly surpassing Sony's market capitalisation. 

“I don't think this is a case of Sony being in bad shape as a company. Rather, Nintendo is doing well with the Wii,” said Soichiro Monji, chief strategist at the equity management department of Daiwa SB Investments.  

“However, if you look at Nintendo's price-to-earnings ratio it is quite high. So I think the stock has largely factored in some of the future growth.”

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