A Different Way to Play the Wii

Nintendo has created a huge hit in the Wii. Clearly, the company's investors are very happy with its performance. But there are other ways to play the video game cycle. Chip makers like Analog Devices, Qimonda or Broadcom, whose components power the Wii, are some other interesting bets to make for those who would want to capitalize on the Wii's success.

From my article in TheStreet.com:

Chip Stocks Win With Wii

Inside the box were names such as Analog Devices and ST Microelectronics, both of which supply the sensors in the console's remote that enable and interactive feeling when playing the game; Broadcom, whose Wi-Fi chips connect the Wii remote (wirelessly) to the screen; and memory chipmaker Qimonda.
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The Wii could eventually account for 40% to 45% of all hardware sales for this generation, Nintendo executives have said. That could translate into 40 million to 50 million units sold throughout the life of this console cycle, says Roger Ehrenberg, president of financial intelligence firm Monitor 110. Ehrenberg, who follows the games sector closely, does not own stocks in any of the gaming or chip companies mentioned in the story.

"As sales of the Wii kick in, I am sure these other companies will benefit either in terms of a near-term bump in EPS and/or an intermediate-term increase in market cap," says Ehrenberg.