History of Original Nintendo NES plus Yobo FC Twin Famiclone
Even before last week’s announcement from Sony (SNE), it seemed nearly certain that company’s dominance in the PlayStation 2 generation of video game consoles would give way to a much more level playing field for the PS3 generation. This time around, Sony faces much stiffer competition from both Microsoft (MSFT) and Nintendo (NTDOY).
It seems that nintendo stands to still dominate, which has been the case since the original nintendo nes console came out back in 1985. And on top of that, even the older original nintendo system (NES) has basically returned. This is due to the fact that now Yobo FC Twin nintendo systems (famiclone) are being produced.
While the Nintendo name is most closely associated with a video game platform (the nintendo NES), the company’s real focus has always been the games rather than the platform. Herein lies the true distinction between Nintendo and its two larger rivals. Nintendo seeks to make good games. This is also why the Yobo FC twin famiclone systems were built as well. Microsoft and Sony seek to control a distribution channel.
Nintendo is the only company among the three console makers that began life as an entertainment company – and it shows. Microsoft is known for software; Sony is known for hardware; and Nintendo is known for games.
American gamers are well acquainted with the Nintendo NES and the FC twin (famiclone) brand; but, American investors generally know very little about the company. That’s unfortunate, because despite all the attention given to Sony and Microsoft’s video game operations, Nintendo is the ultimate pure play video game company.
The original Nintendo entertainment system (NES) is big. The company surpasses U.S. video game publishing giant Electronic Arts (ERTS) in sales, earnings, and market cap. On the last count, some may argue that Nintendo only has a larger market cap than EA, because its stock price has risen sharply over the past year, while EA’s share price has actually declined. However, there’s a much simpler explanation.
Nintendo and even the Yobo FC twin console, also known as the nintendo famiclone, has a larger market cap than Electronic Arts, because Nintendo (the business) is worth more than EA (the business). The run-up in Nintendo’s stock price may be entirely due to improved investor perceptions of the company’s future prospects as a result of the good press surrounding Nintendo’s soon to be launched console, the Nintendo Wii.
Regardless, such an increase in the price of Nintendo’s shares was justified by the rather low value the market had previously placed on Nintendo’s business. The same can’t be said of Electronic Arts. Even after underperforming the S&P 500 over the last three years, EA’s stock price remains at levels that are nearly impossible to justify using any form of rational thought. So, Nintendo really is the world’s largest pure play video game company, which all started with the original nintendo NES consoles and then continued on with the Yobo FC twin famiclone systems.