DS and Wii - Nintendos Dream Team

Despite the woes in the video-game sector, Nintendo (NTDOY, news, msgs) posted solid second-quarter results and is cruising toward an exciting Christmas season. A possible global recession would be just the ticket for this specialist in low-cost gaming.

Playing and winning against high-priced, technologically superior rivals is Nintendo's specialty. So far, Sony's (SNE, news, msgs) PSP has been the ideal foil -- a fancy, expensive rival with lackluster software support. I expect Microsoft's (MSFT, news, msgs) offerings to follow suit. (Microsoft is the publisher of MSN Money.)

This Christmas is billed as the battle of tabletop consoles. Sony PS3 hype is mounting as Microsoft tries to ramp Xbox 360 volumes above 10 million units ahead of the rival launch. But the combination of DS and the cheap Wii tabletop machine could well turn out to be a winning formula for Nintendo -- particularly if consumers grow wary of spending more than $600 on a new console/game package.

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