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Wii debut sparks massive price boost for Nintendo shares

Nintendo's share price risen sharply after the company's debut showcase of its new Wii console at E3, investors encouraged by the company's plans despite the lack of any firm pricing details for the machine.

Nintendo's share price rose sharply after the company's debut showcase of its new Wii console at E3, suggesting that investors are encouraged by the company's plans despite the lack of any firm pricing details for the machine.

According to a report on the BBC website, shares rose 6.2 per cent to reach YEN 19,700, having gone as high as 19,890 - the highest level for the company since April 2002.

Announcing the new machine and a slew of high profile first and third party software titles at the Electronic Entertainment Expo last week, Nintendo's latest foray into the videogames market was met with a warm response, wotj executives from both Microsoft and Sony tipping the console as a worthy second hardware purchase for consumers.

The realisation of Nintendo's 'disruptive technology' ethos which began with the Nintendo DS - an innovative touch-screen device that continues to dominate the handheld market and is set for further growth with a new Lite version soon to be released in the West. The Wii console is unable to compete with Sony or Microsoft on sheer graphical or processing power, but that's something Nintendo is acutely aware of.

Instead, Nintendo is aiming to attract a much broader audience through innovations in game design and the introduction of a revolutionary motion-sensing controller, the demonstrations of which were generally met with enthusiasm by attendees at the show, and backed up by investors and market watchers with a noticeable positive shift in share price for the Japanese firm.

The Wii is expected to retail for considerably less than the Xbox 360 or costly PS3 when it launches this Autumn, although Nintendo has yet to confirm its pricing structure and is expected to make an announcement in preparation for the Tokyo Games Show in September.

Author

Paul Loughrey

Contributor