| xtx said: http://www.bloomberg.com/apps/news?pid=20601101&sid=ajbKoZXI2hOk&refer=japan Sony, the maker of the Playstation 3 game console, jumped 230 yen, or 3.8 percent, to 6,230, the highest close since July 9, 2002. |
Following shares of Sony (SNE) is not the best way of tracking the performance of the PS3 since Sony is a gigantic electronics/media conglomerate. A full 69% of sales in FY 06 come from the electronics business and this includes TV's, home audio, computers, and cameras.
The games business is the second biggest part of Sony and yet only accounts for 13% of total sales. This segment includes all game consoles and software.
Following that at around 10% are both the motion pictures business and financial services business. Bet you didn't know you could buy life insurance with Sony in Japan.
The recent rise in SNE has a lot more to do with the Japanese economy recovering from a soul crushing 12 year recession than the success or failure of the PS3. Almost all the stocks in the Japanese market finally bottomed out in 2003, this includes both Sony and Nintendo (NTDOY). Check out this horrendous chart of the Nikkei 225.
http://finance.yahoo.com/q/ta?t=my&s=%5EN225&l=on&z=l&q=l&c=
On the other hand Nintendo's recent rise in share price is far more reflective of the success in both the DS and the Wii because Nintendo is a pure video game play, meaning all their sales come almost exclusively from the sales of their consoles and games.
Here are the long term charts for both SNE and NTDOY
http://finance.yahoo.com/q/bc?s=sne&t=my&l=on&z=l&q=l&p=&a=&c=
http://finance.yahoo.com/q/bc?s=NTDOY.PK&t=my&l=on&z=l&q=l&c=
Full disclosure, I own shares in NTDOY and congrats to all other longs.
Essay Pro