Investors playing Nintendo need agility to win profits

Article Abstract:

Investors purchasing stock in companies that manufacture software games for Nintendo Company Ltd's machines or in retailers who sell the games find the market volatile and risky. Retailing companies are generally less risky investments than are software companies associated with the $200 Nintendo. Software chain Babbage's Inc operates 200 stores and expects to profit from the increased demand of the new 16-bit Super Nintendo Entertainment System (Super NES). Babbage's sold out its supply of Super NESs resulting in a stock increase to $20. Sales of Nintendo games and machines will likely claim 25 percent of Babbage's sales for 1991. Toy retailer Toys 'R' Us Inc also expects the popularity of video games to increase its profitability. The company's stock reached $36 on the New York Stock Exchange after it received its shipment of Super NES machines. Nintendo Company expects to sell two million NES machines and six million games during 1991 and 1992.

Computer and software stores, Hobby, toy, and game shops, Children's and infants' wear stores, Analysis, Marketing, Stock-exchange, Stock exchanges, Investments, Securities, TOY, Nintendo Company Ltd., Stock markets, Toys R Us Inc., Stock Market, Stock, Babbage's Inc., Nintendo Entertainment System (Computer-based entertainment system), BBGS

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Nintendo-Philips deal is a slap at Sony; for all three companies, the stakes are large

Article Abstract:

Nintendo Co agrees to a deal with Philips NV, a main competitor of Sony, only a day after announcing a deal to make electronic games with Sony. On May 31, 1991, Sony states that it will introduce a game machine called Game Player with two slots: one to play Nintendo game cartridges and the other for CD (compact disc) games. On Jun 1, at the 1991 Consumer Electronics Show, Nintendo reveals that it plans to join with Philips to develop a new generation of CD video games with high-quality sound and improved graphics. The Sony and Philips disk systems are not expected to be compatible. Nintendo apparently is turning to Philips as part of a strategy to maintain Nintendo's domination of the $4.7 billion video game market. The deal with Sony is evidently now viewed as an unfavorable one. For consumers, it means that choosing a video game products may become even more confusing.

Games, toys, and children's vehicles, Product development, Consumer electronics, Contracts, Sony Corp., Video games, SNE, Nintendo of America Inc., Philips Gloeilampenfabrieken N.V., PHG, Industry Analysis, Outlook, Competition

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