Nintendo share price rises as DS impresses markets

Shares in Nintendo rose on the Tokyo Stock Exchange at the start of this week, as continued uncertainty about certain key aspects of Sony's PSP plans tipped analysts in favour of the forthcoming DS handheld.

The company's decision not to exhibit at the Tokyo Game Show last weekend might have been expected to damage its fortunes on the exchange, since it gave Sony a chance to show off the PSP in public without competition from its main rival.

However, Nintendo unveiled a well-received low price point for the DS in the days ahead of the show, and aggressively raised its shipment projections - while Sony continues to stay silent on the key issues of pricing and battery life.

There are also question marks over Sony's ability to deliver a strong third-party line-up for the PSP for its Japanese launch this Christmas. "People who were disappointed after seeing Sony's PSP and its games may now be anticipating the Nintendo DS," UFJ Tsubasa analyst Kei Oka said bluntly in an interview with Bloomberg Japan.

Nintendo's share price rose 2.1 per cent on the Monday following the end of the Tokyo Game Show, and continued to rise on Tuesday. The share price is currently at 13,000 Yen, only a few points away from its 12-month high of 13,160 Yen, which was reached in late June, and has been growing fairly steadily since the start of September.