PS3 responsible for Nintendo stock stagnation

The Nintendo DS and Wii continue to print money, and the stock prices have demonstrated Nintendo's incredible success. Both systems continue to be top-sellers this holiday season, so why has the stock stagnated? The PS3, according to some financial analysts. "People's perception of the PS3 is improving from an underdog to something better, and part of the money that used to flow into Nintendo shares is now going to the Sony stock," said Yoshihisa Okamoto, fund manager at Mizuho Asset Management.

"The PS3 has been doing better recently. But that's partly because there are not enough Wii machines to go around in the United States and Europe," noted Rakuten Securities analyst Yasuo Imanaka in a report by Reuters.

It's interesting to see analysts finally turn around in their assessment of the PS3, no longer thinking it the underdog it appeared to be at the beginning of the year. With a strong lineup of games coming in 2008, PS3 has a strong chance to start chipping away at the lead that Microsoft and Nintendo have earned. Fanboy flame wars are going to get a lot more interesting next year.

[Via GameDaily]