Nintendo (NQB: NTDOY) gave us the first price cut in the world of next-generation handheld systems. The Nintendo DS used to set you back $149.99. Not anymore. These days, one of those nifty little double-screen devices is $20 cheaper in the United States.
Nintendo is looking to ring a Pavlovian bell here. With the Sony
The big story here for Foolish investors is that companies like Activision
I'm not necessarily going to run out and pick up a DS -- I'm not really into playing games on small screens, to be honest -- but I know a lot of people will. And I know that Sony is going to be carefully considering a drop for its PSP unit in the wake of this move by Nintendo. After all, the powers that be are not going to let Mario have all the fun, are they?
The Fool has constantly invoked the mantra that the video game sector is a great one to be in for long-term growth and that software companies offer substantial potential. It's a believable thesis from where I sit, and it becomes even more palatable when the price wars on the hardware side of things heat up.
Individual investors are going to have a lot of fun tracking the effects of this price cut -- perhaps even more fun than playing the games themselves.
Are you game for some related articles?
Activision and Electronic Arts are past selections of the Motley Fool Stock Advisor newsletter. To view additional recommendations with a 30-day risk-free trial, click here.
Don't forget to check out the Video & PC Games discussion board.