Nintendo Stock Falls by Half in a Year

Japan: Market continues to drop, with a glimmer of hope around the corner.

Yesterday's Taiwan Times painted a bad picture for the Japanese market. Kenji Akasaka, a printing company president, finds times the worse in 40 years. Akasaka invests in blue-chip technology in Toyota and Nintendo, with both companies losing roughly half their value in the last year. "I pray before I go to bed that the Dow will recover," he said.

Still, Wii sales are holding their own in Japan, selling 25,330 units between September 29 and October 5. Nine Wii titles rate in the Top 50 during the same period and retailers are slashing game prices. Nintendo remains confident of Wii sales in America during the holiday season, with a ramp-up in production already underway.

Another sign of hope comes from a MarketWatch report. Video games stocks have been oversold and may rebound during the holiday season. Todd Mitchell of Kaufman Bros. believes it is time to think about buying stock in EA, Take-Two and THQ Inc.

"We are not saying to go out and catch a falling knife, but we believe these stocks are at a point now where investors should begin to get constructive with the goal of picking their favorites and putting new money to work as we see signs of economic stability emerging," said Mitchell.

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