Wednesday, August 09, 2006

Wii Will Rock You

What's the best way to make money? Find your competitive advantage. Being a college student, soon to graduate, I know something that most of wall street doesn't have a clue about. Video Games. Buy NTDOY,

Which Next gen console will win the battle between the Wii, Xbox360, and PS3?

Wii has four advantages over it's competitors.
1. The controllers are revolutionary with motion sensitivity and a TV controller look.
2. The games are meant for all audiences; yes I can see a 50 year old swinging the controller against a 10 year old in a round of tennis.
3. The cult classic games. Fun gameplay will always trump graphics. Who can wait for the new Duck Hunt or Mario Galaxy?
4. Price Wii Price: $200-250

These four components are shown when comparing Nintendo's handheld DS to Playstation's PSP.
1. The DS is a touch screen
2. The games are meant for all audiences (Brain Age)
3. The classics are here (New Super Mario, Mario Kart DS, Metroid Prime: Hunters)
4. Price $150 compared to PSP's $200

Needless to say, the DS handhelds are flying off the shelves (as explained in their last earnings summary. ) While the PSP has bombed.

Xbox360 released too soon, it's games turned out to be mediocre, and the system will be considered old news by Christmas time.
Xbox360 Price: $300-400

PS3 is a graphics powerhouse with tons of futuristic extras. Yes I could say that the PS3 also has a motion sensitive controller, but from the most recent reports it is merely a rip off, and not well utilized. (Basically just to say that they have it)
PS3 Price: $500-600

No that wasn't a typo. This is what will kill the PS3. Mom and dad will not shell out $500 for a PS3 this Christmas, when they could buy an Xbox360 AND a Wii for the same price.

PS3 fans will tout the HDTV, the Blu Ray discs, the (insert pointless added frill here). Xbox360 fans will mumble something about Halo. But when it all falls down, both of these systems are missing four crucial things.

I'm not charting this one, as it's not as reliable to do with an ADR. Buy NTDOY and hold through January. If you do, I guarantee this holiday season you'll be rockin' around the Christmas tree.

Nintendo is an ADR so you can't just trade it daily. Buy it at market when you think it will bounce, I'm thinking around 22.2 at it's 50DMA.

If you have the time checkout this link on the Wii.

Confidence Rating: 5/5

1 comment:

Slacker said...

Good pick, Chris... Wii should be a big hit