Games Industry Wire

Nintendo Market Value Breaks 10 Trillion Yen, second in Japan

by Kiven on October 17th, 2007

Reuters announced that Nintendo crossed the 10 trillion yen total market value on Monday, after it was revealed the value of Nintendo stock has risen (for the nth time) 5.3% to close at 71,300Y per share. As previously reported, this places Nintendo as Japan’s third most valuable company, behind Toyota and the Mistubishi UFJ Financial Group, and Nintendo shares officially as the second most valuable stock in Japan.

The 10.1 trillion yen figure (equivalent to $85 billion US dollars) represents Nintendo’s “market capitalization” — ie. the value of its current per-stock price multiplied by the total number of Nintendo shares floating out there in the world. This figure equates to approximately five times what the company was posting two years ago and is almost double the market capitalization of Sony (despite the latter having eight times as much straight-up revenue as Nintendo).

Spurring Nintendo’s stock upwards was the recent announcement of a December 1 release date for Wii Fit, plus the understood consensus among investors that Wii and DS are going to tag team the holiday shopping season into the canvas.

“There’s more upside than downside risk,” says KBC Securities analyst Hiroshi Kamide. “There’s every reason to believe Nintendo will continue to execute its strategy well in expanding the gaming industry to strengthen its position … and really keep doing what it’s been doing regardless of what competition is doing.”

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POSTED IN: Game Publishers, Industry News, Nintendo