Nintendo’s stock hit another high. It is now the second largest company in Japan based on market cap.
The cause for the current share price run-up is that the company has introduced a version of its popular Wii game for the health crowd.
According to Reuters "the new game features a pressure-sensing mat called the "Wii Balance Board" which can be used for such activities as yoga and aerobics." Nintendo sees the product as a way to expand the definition of video games.
The new product is an indication of why Nintendo’s game products beat those from Microsoft (MSFT) and Sony (SNE) in unit sales. The two large companies would appear to have more resources than Nintendo, but they have stuck to the idea that a video game is a console for playing DVD and pre-packaged products like "Halo 3". Nintendo has made it console easier to use and is obviously expanding into areas beyond those where players just sit in chairs and gain weight.
Innovation over tradition. It usually wins.
Douglas A. McIntyre
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