2. Nintendo Co., Ltd (ADR) (PINK: NTDOY)
As one of the original Godfathers of gaming, Nintendo has set the standard when it comes to stability and longevity. I don’t have much of a concern here.
Looking at the big picture it hasn’t always been a smooth ride for Nintendo. The NES and Super NES were dominant. But the sun seemed to be setting on the titan of gaming in the mid to late 90s as Nintendo looked unable to compete with companies like Sony Corporation (ADR) (NYSE:SNE), with its Playstation, and Microsoft Corporation (NASDAQ:MSFT) and its Xbox. However, with the release of the Wii, Nintendo was able to push the sun back into the sky and prove to investors they’ve still got the right stuff.
Profits have been less than impressive in recent years for Mario’s maker, and that makes the stock look pretty darn expensive. However, in this case I think the bigger question is whether profits will make a comeback, and with the disappointment in the launch of the Wii U there are still quite a few question marks surrounding Nintendo’s future.
3. GameStop Corp. (NYSE:GME)
Once again, we’ve got a company that’s no newcomer to the dance. Started under the name Babbage’s in the mid 1980’s, it’s fair to say that GameStop has put in its time.
I can’t say that I’m particularly excited about brick and mortar, especially in the video game realm. But, as it turns out, GameStop is more than just the corner shop at the mall. Like Nintendo, it’s found a way to survive by creating a niche – and for hardcore gamers, particularly those on a budget, GameStop offers a great place to buy and sell used games, get magazines for tips on better game play, discuss games with knowledgeable staff, and of course pick up the hottest new titles.
It would appear that I’m not the only one skeptical about brick and mortar in the video game world. Judging by GameStop’s price-to-earnings ratio (after adjusting for some one-time stuff over the past year), investors aren’t hot on the company in the least.
Final Word
Is it time to tell moms everywhere that video games aren’t a waste of time? Well, I’m not sure I’m ready to go quite that far yet. However, I do think that there’s some promise in all three companies I’ve briefly discussed here. What’s in store next, then? Over the next few days, I’m going to pull out my microscope and take and even closer look at each one to see whether it could be worthy of an investment.
The article Are These 3 Gaming Stocks Right for a First-Time Investor? originally appeared on Fool.com and is written by Dave Koppenheffer.
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