The FT writes that Nintendo is now the No.2 market cap company in Japan, trailing only Toyota (TM).
While this may say something about the company’s video game platform sales lead over the Microsoft (MSFT) Xbox and Sony (SNE) PlayStation 3, it says a good deal more about how investors value certain parts of the economy.
Companies like NTT (NTT), one of the world’s largest telecom companies, Japan Steel, ad agency giant Dentsu, bank Mitsui Trust, and brokerage Nomura have lagged. Much like shares in the US markets, technology leaders are beginning to take over the market cap tables.
Nintendo is now viewed as a company with products that sell well in Japan, the US, and Europe. But, video games may be the ultimate in cross-border products. There is nothing to prevent them from doing well in huge emerging markets like India and China. The Wii and Nintendo portable are not expensive to make and not expensive to ship. They are not expensive to buy, either.
Nintendo is a symbol of what Wall St. is looking for in the future. A simple company with massive markets.
Douglas A. McIntyre