Will you Wii U? Probably, if you can get your hands on one. The fact that Wii U has already sold out of pre-orders only piques my interest (in addition to good ol’ Nintendo nostalgia). This new wave of interest speaks to persistent power of the Nintendo Wii brand, which opened up gaming to a world of casual gamers.
Or anyone with $300 to spare. The new Wii U comes in ubiquitous white ($299) and a dressier black ($349). Nintendo (NTDOY) is hoping to boost falling margins by nudging consumers towards the deluxe black set which offers 32GB flash memory as opposed to just 8GB of the basic model. Both have 2GB of RAM.
When you compare these specs to a 250GB Xbox or a 320GB PS3 (both are ~$300), the WiiU is puny! And when you consider Microsoft’s (MSFT) Xbox 720 and Sony’s (SNE) PS4 that are looming on the 2013 horizon, the current stock out for the WiiU seems premature.
But Nintendo devices were never about sheer horsepower. They are about possibility. They are about sharing entertainment. And now, multimedia entertainment. In addition to the slew of familiar multi-player games including new Pikmin and Super Smash Bros., Wii U will connect you via TVii to content-providers such as Netflix (NFLX), Amazon (AMZN) instant video, and Hulu. The new GamePad controller, a handheld touchscreen tablet, offers even more options for gaming, streaming, and browsing.
With these new features, the Wii U hopes to be the hub of your entertainment needs. However, the video on demand market is heavily competitive and fragmented. The friendly Wii U is going to have to find a profitable niche among set-top boxes like ROKU (under $100) and Apple TV (AAPL)(also under $100), content providers like Netflix, and even tablets like the iPad, the current benchmark for all things media. Wii U aspires to compile all these sources of fun into one device at a premium.
For those who are itching to touch, tap, watch, dance, or stream an HD movie. WiiU branded remotes and accessories will be available before the November 18 Wii U release date, according to a Nintendo preview.
Business Section: Investing Ideas
Investors are getting excited, as evidenced by the recent and rapid rise in share price. Do you think there is more upside to price in? Will the price hold at higher levels?