Nintendo now one of Japan's top 10 firms

Nintendo has appeared on the list of the ten most valuable companies in Japan for the first time in its history, sitting alongside household names such as Toyota, Honda and Canon.

Nintendo's Wii console has outsold Sony's PlayStation 3 console by three to one in Japan and by more than two to one in the United States so far this year, according to research firm NPD.

Demand for the Nintendo DS handheld has also so far outstripped that for Sony's PlayStation Portable.

Mizuho Securities analyst Takeshi Koyama said: "It is becoming quite clear that Nintendo is taking back its market share from Sony in the console market while well defending its stronghold of portable games."

However, Koyama then warned: "This is one of those companies that is not exactly making daily necessities. One negative factor and shares could take a dive. We need to be careful in dealing with shares like this."

Sony has seen its shares increase by 67 per cent over the past two years, but Nintendo shares have soared fourfold over the same period thanks to a plethora of innovative consoles and titles such as Brain Age.