This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Will Nintendo And AMD Benefit From Xbox, PlayStation Console Refresh?

Stocks in this article: AMD MSFT SNE

Chris Lau, Kapitall: Ironically, as the two most popular gaming consoles gear up for their refresh, smaller competitors could benefit. 

The Sony (SNE) PlayStation 4 and the Microsoft (MSFT) Xbox One are nearly in your hands, and incidentally, there's a chance two competing companies stand to benefit as well: Nintendo (OTC:NTDOY) and Advanced Micro Devices (AMD)

Check out this infographic from Kapitall: Next Gen Gaming with New Xbox One and PS4 Consoles

Nintendo is up along with Microsoft shares in the last six months compared to AMD:

Click on the interactive chart to view stock prices over time.

Suprisingly strong sales

Nintendo announced 300,000 new users for Wii U in its quarterly results. The boost in sales was spurred partly by a price cut. Nintendo wants to have 9 million consoles sold by the end of March 2014. For now, the company is losing money to build its user base, after dropping around $82 million in the quarter.

As the PS4 and Xbox One consoles roll out, Nintendo could be poised to benefit if consumers decide a less expensive option is preferable. 

It is also important to note that Nintendo is not completely dependent on traditional console sales. Handheld console sales are still growing. Nintendo sold 2 million 3DS/3DS XL handheld consoles in the quarter.

Microsoft could back away from the traditional model

On the eve of the Xbox One launch, rumors are circulating that Microsoft could sell Bing and Xbox. If Stephen Elop becomes CEO of Microsoft, this could very well happen. The Xbox unit cost Microsoft billions in the last few years, so this move makes sense to some analysts.

Free from trying to push Microsoft into the living room, the software giant would focus on other products. Server software and office productivity apps are very profitable for Microsoft. Interest in Windows 8.1 is steady but weak, as is demand for Windows tablets. These are two areas of potential growth, but would likely need Microsoft’s full attention to perform better in the future.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs