Leveling Up: New Xbox and Wii Systems Are For The Masses

Leveling Up: New Xbox and Wii Systems Are For The Masses

Research  these Stocks on Kapitall’s Playground Now

research now

In 2012, the trends in the gaming industry have all been to get away from what has made gaming enterprises successful in the past.  Sales of all consoles have decreased thirteen percent this year as the amount of other outlets for entertainment is at an all-time high.  As a result, gaming manufacturers are in a race to reinvent themselves and remain relevant.

While it might be difficult for hard-core gamers to accept, they are no longer the key demographic that Microsoft (MSFT), Sony (SNE), Nintendo (NTDOY) and others are targeting.  Microsoft announced today that it would offer a new way for customers to pay for the Xbox 360 system with a monthly subscription service in the model of what many cell phone companies use.  Additionally, subscribers would have access to a cheaper up-front payment for the console and be able to watch NetFlix (NFLX), ESPN (DIS),and Paramount (VIA) and have access to other content providers with which Microsoft has struck deals.  A new service called Xbox Music is also being launched that will contain forty million new tracks and work across other Microsoft devices.

The tablet sphere is also changing the game for these companies.  This morning Nintendo announced it would be launching the Wii U, the first gaming device with a tablet-based controller.  The device has been hailed as a “Swiss army knife” of video games by P.J. McNealy of Digital World Research and is another product in the tablet mold set to be released by years end.  According to Nintendo this will also be the first device that shifts the focus of the gaming experience from the television to the console.

With the continued proliferation of the tablet platform and the shift of gaming consoles to multi-purpose and all-encompassing entertainment systems, traditional gamers are less and less the focus of gaming innovation.  In order for these companies to succeed into the future they will have to balance retaining their gaming audience and adapting to the changing landscape of their industry.

Business Section: Investing Ideas

Microsoft and Nintendo are both diving looking to revolutionize the gaming console industry. How do you think it will play out?

Here's a short index of companies exposed to the increased use of gaming and consoles:

Interactive Chart: Use the Compar-O-Matic to compare changes in average analyst recommendations over the past two years for EA, MSFT, NTDOY and other gaming industry names:


1. Microsoft Corporation (MSFT, Earnings, Analysts, Financials): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap at $239.51B, most recent closing price at $28.51.


2. Nintendo Co., Ltd (NTDOY, Earnings, Analysts, Financials): mainly engaged in the development, manufacture and sale of entertainment products in home entertainment field.



3. Electronic Arts Inc. (EA, Earnings, Analysts, Financials): Develops, markets, publishes, and distributes game software and content for video game consoles, personal computers, mobile phones, tablets and electronic readers, hand held game players, and the Internet. Market cap at $4.18B, most recent closing price at $13

4. Activision Blizzard, Inc. (ATVI, Earnings, Analysts, Financials): Activision Blizzard, Inc. publishes online, personal computer (PC), console, handheld, and mobile games of interactive entertainment worldwide. Market cap at $12.91B, most recent closing price at $11.61.


5. Apple Inc. (AAPL, Earnings, Analysts, Financials): Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Market cap at $526.28B, most recent closing price at $562.83.


6. Zynga, Inc. (ZNGA, Earnings, Analysts, Financials): Market cap at $4.22B, most recent closing price at $5.73.



7. GameStop Corp. (GME, Earnings, Analysts, Financials): Operates as a retailer of video game products and personal computer (PC) entertainment software. Market cap at $2.58B, most recent closing price at $19.54.


8. Take-Two Interactive Software Inc. (TTWO, Earnings, Analysts, Financials): Develops, and distributes interactive entertainment software, hardware, and accessories worldwide. Market cap at $1.B, most recent closing price at $11.14.


9. Glu Mobile, Inc. (GLUU, Earnings, Analysts, Financials): Engages in the design, marketing, and sale of casual and traditional mobile games worldwide. Market cap at $283.8M, most recent closing price at $4.40.



(List compiled by Daniel Connelly )


Use Kapitall's Tools: Looking for ways to analyze this list?

Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall's tab navigation to browse through the data…


Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

New to Kapitall?

1. New to the site? Click here to register for a free account, and gain access to more tools and data
2. Looking for more investing ideas like this? Click here to sign up for your free copy of Kapitall Weekly
3. Follow us on SeekingAlpha, Motley Fool, Nasdaq and Twitter




Kapitall Wire, which is not a broker/dealer, offers free cutting edge investing ideas, lively commentary and timely analysis of companies enhanced by interactive tools. And the Investing 101 section breaks complex concepts down to their basics, offering education to novices that doubles as a refresher course for more seasoned investors.

Kapitall Wire is a division of Kapitall Inc. Securities products and services are offered by Kapitall Generation, LLC, member FINRA/SIPC . Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.


Leave a Reply

Your email address will not be published. Required fields are marked *

  • See Most Recent Articles