Financial Advisor Update
Around the Wii in 800 Words
Michael Comeau
11/30/07 - 04:59 PM EST
A few weeks ago, I asked readers to send me their questions regarding the Nintendo (NTDOY Quote) Wii, and the response was staggering, echoing the media's distinct focus on the hot console. So, here are my answers to a small selection of the questions, covering a decent amount of ground, from stocks to Christmas presents.
What's the best way to make money off the Wii?
-- Eric The easiest way to make money on the Wii is to buy a console at retail and resell it at a big premium. I firmly believe you can make 50% on your money at the very least. But if you're talking stocks, the best way to play the Wii is video-game retailer GameStop (GME Quote), which is currently a pick in the Breakout Stocks newsletter.
Is Nintendo artificially controlling the supply of the Wii?
-- Ed Nintendo probably isn't intentionally holding back supplies of the Wii, simply because it would be foolish to give up sales before the higher-priced Microsoft Xbox 360 and Sony (SNE Quote) PlayStation 3 come down in price and become more competitive. Nonetheless, the fact that demand continues to outstrip supply can be considered a positive from a psychological standpoint -- the harder it is to find something, the more people tend to want it. If Wiis were piled up on store shelves, demand might actually fall.
With video-game graphics becoming so realistic, how can the Wii keep up with its more technologically sophisticated competitors?
-- Michael It's important to note that with the Wii, Nintendo is aiming for a much broader and more casual audience, which includes people who aren't necessarily attracted to photorealistic graphics and blaring surround sound. Nintendo is placing a clear emphasis on attempting to offer more accessible game play, which it feels will win over converts. This strategy is very different from that of Microsoft and Sony, which have placed their bets on more expensive consoles that tend to attract more serious gamers.
Where can I find a Wii to buy?
-- Jason Unless you want to pay a bounty on eBay (EBAY Quote) or Craigslist, I recommend asking local stores when they get their Wii shipments, and then trying to time a store visit to nab one. Also, I recommend avoiding video-game specialty shops and trying places like Costco (COST Quote), where you'll face less competition for a Wii.
Are there any Wii games that are as fun as the Wii Sports that was included with the console?
-- Phil I find Wii boxing to be a ton of fun, but if you're looking for a good time outside of that, I recommend picking up Super Mario Galaxy and/or Activision's Guitar Hero 3, both of whom are plenty of fun and offer enormous replay value. And going forward to 2008, Super Smash Bros. and Mario Kart Wii both look like winners.
I have two daughters, ages 4 and 7. What Wii games are good for them? I would highly recommend the High School Musical and Hannah Montana games from Disney (DIS Quote). These names are extremely hot with girls and I'm sure your daughters would have a good time. Alternately, they might have a lot of fun playing Konami's (KNM Quote) Dance Dance Revolution, which will have the added benefit of giving them some serious exercise.
Do you think your views on video-game stocks are jaundiced by what you prefer gaming-wise?
-- Mark When researching video-game stocks, I place some emphasis on my firsthand experiences with playing games, but only in the context of forming an opinion on their commercial viability. For example, I was extremely impressed with the multiplayer demo of Call of Duty 4, which will be a top seller this holiday season. But that was only one small factor in my bullish outlook for the game. I also did a great deal of snooping around on message boards, speaking to gamers, and talking with salespeople in game stores, which added up to very strong prospects for the title. I'd like to thank everyone who sent me a question, and I'll be happy to address any future inquiries on the gaming industry. Feel free to drop me a line.