Nintendo Co., Ltd (ADR) (NTDOY): More Reasons To Avoid This Video Game Giant

In fact, Microsoft Corporation (NASDAQ:MSFT) has been bringing a lot of new products out lately, including Windows 8, an updated version of its Windows Mobile, and the Surface. All of those products are more important to the company because they address the mobile shift that’s taking place. Xbox isn’t an also ran product, but anticipation for the new console isn’t what’s driving Microsoft shares right now.

That said, investors seem to be getting more comfortable with the operating system giant’s mobile efforts. The top line has been heading roughly higher over the last decade, the dividend has been increased annually over that span, and despite an earnings dip in 2012, the company is highly profitable. Growth and income investors should find the company’s around 2.7% dividend yield and upper teens price to earnings ratio combines a fair price with a decent income stream.

Fighting Back?

Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY)’s attempt to fight back is to embrace the casual game market by opening up its Wii U to outsiders in the same way that mobile devices like Apple Inc. (NASDAQ:AAPL)’s iPhone and iPad accept Apps from developers. While that should lead to a flood of game makers redesigning their mobile apps to work on the Wii U, it won’t likely lead to an influx of exclusive must-have games.

In fact, offering living room size games that people can already play on their iPhone doesn’t seem all that alluring at all. This is likely to be a bad holiday season for Nintendo Co., Ltd (ADR) (OTCMKTS:NTDOY) and the latest push suggests the company has nothing up its sleeve. Investors should avoid the shares until the video game company has something new and exciting to offer.

The article More Reasons To Avoid This Video Game Giant originally appeared on Fool.com and is written by Reuben Brewer.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Apple and Nintendo. The Motley Fool owns shares of Apple and Microsoft. Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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