Nintendo enters Japan's top ten list

Wii News | World's richest plumber.

The market has spoken - hot on the heels of Nintendo's success in getting third-party publishers on side comes the announcement that Nintendo has become one of Japan's top ten most valuable companies.

Nintendo's share price has risen above ¥46,000 (approximately AU$440 / ₤186), pushing the company into a list that includes Honda, Toyota, and Canon. In total, Nintendo is now worth approximately ¥6.57 trillion, roughly equal to AU$62.7 billion or ₤26.6 billion. This figure is the market capitalisation of the company, or the number you get if you multiply the total number of shares by their value. To keep things in perspective, that's larger than Vietnam's gross domestic product.

Nintendo's success in Japan has been overwhelming, where 17,655,799 DS units have been sold since launch 2.5 years ago. It is highly likely that the DS will surpass the PlayStation 2 to be the highest selling system of all time in Japan sometime this year. The Wii has also dominated the home console front since launch with 2,734,994 units sold, almost triple Sony's 928,994 PlayStation 3 sales, despite the PlayStation 3 launching a month before the Wii. It's a similar story in the US, where the Wii comfortably outsold the PS3 and Xbox 360 combined in May.

Depending on what time you check the stock quote, Nintendo is now worth the same or more than rival Sony, who are a much larger company in terms of assets.

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11 Comments

admeister

4 years ago

Sounds like Mario is rolling in it. Who knew a plumber could make so much money?

Seriously though, this is quite a feat, they've become a monster company, which is a huge turnaround since they were supposedly "finished" after the Gamecube. The success of the Wii and DS really has been overwhelming pretty much everywhere, something that a lot of people wouldn't have expected, it looks like Nintendo may have hit the nail on the head when they came up with the two. Who'd have guessed two years ago?

It was a fairly big gamble (especially outside of Japan), but it seems to have paid off, big time. Congratulations, I guess, now give me my SPM!

SMASHED

4 years ago

Well the DS is allready a proven winner, though I hope Wii can do the same

And it darn will!

doofus

4 years ago

Quote

Depending on what time you check the stock quote, Nintendo is now worth the same or more than rival Sony, who are a much larger company in terms of assets.

Considering how many pies Sony has their finger in, whereas Nintendo is first and foremost a gaming company, this is really impressive!

4 years ago

Wow that is amazing - however share price is a pretty transient metric. Earnings per share and earnings growth per share is the real measure - particularly over the past three years and forward forecasts for the current & next three years. In both instances the shares price of Sony & Ninty are bad deals.

Even though Sony's share is only a third of its glory days their price is still overvalued compared with its earnings per share and net tangible assets. Whilst Sony's shares are not growing Nintendo's shares have gone into the stratosphere but the price rise is not completely relative to growth in past & current earnings, rather they factor in the company being able to almost triple their profit over the next three years and then hold those gains for several years to justify todays record value... IE: it needs to start eeking out an anual EBIT of around Au$4.5 - $5.5 Billion plus! which is a damned big hairy scary target for the Wii & DS.

Can Nintendo sustain this sort of momentum for a full decade? If so I guess we should all jump in.

The big question is whether Nintendo will spend some of its share value now and buy something that will deliver those kind of earnings????

renegadesx

4 years ago

Yeah, they've overtaken Sony, all of Sony. That is really impressive.

NismoR34

4 years ago

What impresses me when I hear about news like this isn't the numbers that the console/handheld are selling, or how Nintendo are gaining from the two platforms or whatever; it's the fact that just a mere year or so ago people were saying that Nintendo were done and no one believed you (us?) when we defended the company, mentioned the money that they had sitting in reserve and things like that. The memories of me (and others) defending Nintendo and not claiming ultimate doom for them and now seeing all that become a reality, makes me smile.

Proof that fanboyism is ignorance, no?

doofus

4 years ago

I have a lot of faith in Nintendo.

They need to survive, as they are the last of the gaming companies still making consoles.

Crestfallen

4 years ago

doofus wrote

I have a lot of faith in Nintendo.

They need to survive, as they are the last of the gaming companies still making consoles.

What? As if MS and Sony can't make competent consoles?

admeister

4 years ago

NismoR34 wrote

Absolutely, I made a note of that in my above post, I certainly haven't forgotten. I'm calling this Turnabout Nintendo!

They're very clearly back in the game, look out Sony and Microsoft. Who knows what we'll see from them in the future, they could do a lot with the money they've made now (and will probably keep making).

doofus

4 years ago

crestfallen wrote

doofus wrote

I have a lot of faith in Nintendo.

They need to survive, as they are the last of the gaming companies still making consoles.

What? As if MS and Sony can't make competent consoles?

No, not at all.

If you had to categorise Sony and Microsoft, you wouldn't call them gaming companies, would you?

Not like the good old Sega vs Nintendo days where both main competitors were gaming companies.

Crestfallen

4 years ago

^ Meh, they're all companies in the end. I'm indifferent to it all; I fail to feel empathy or joy for any of the console makers.

Plus Nintendo deserved to lose their lead.

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