It's a good time to buy shares if you think the company has a hit product coming up and investors aren't clued in to how big a hit it will be. Possible candidates would be Windows 8, PS Vita and Wii U. Personally, I think the Wii U might be successful enough to get Nintendo out of the doldrums, but I don't think it will be a smash hit like the Wii was. I don't expect the PS Vita to perform any better than the PSP did. Windows 8 is a wildcard. It's a really ambitious project, and I don't think MS will quite pull it off, but if they do, the upside will be enormous. It will either carry Microsoft into the mobile future, or trap Windows as king in a shrinking kingdom of conventional PCs.
Kinect, Nextbox... whatever MS does in gaming is hardly going to be noticed by their stock price. Microsoft's huge revenues break down something like:
30% Windows
30% Office
25% Server
15% Other
And whatever portion of that 15% remainder is video games, its margins are crushed by the golden profits of the software 85% because Xbox and Kinect are hardware products. The Nextbox would have to crush it harder than the Wii and take over the living room to substantially shift Microsoft stock value.

"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event." — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.







