Let’s-a go!
Gamers have been gearing up for today’s launch of the Nintendo Switch 2, which is likely to be in short supply due to enormous demand. That’s despite a price tag of $450 and premium game titles like Mario Kart World going for $80. The next-generation console, which will be backward-compatible, features a bigger screen and sleeker graphics, as well as ergonomic and magnetic Joy-Cons, with larger buttons and better haptics.
Backdrop: Nintendo scored a major victory with its original Switch console, which hit the market in 2017. Eight years later, the gaming giant has sold more than 150M units of the hybrid system, making the list as the third best-selling game console of all time (behind the PlayStation 2 and Nintendo DS). Any future success will be closely watched by Sony (SONY) and Microsoft (MSFT), which both released their last consoles in 2020 (the PS5 and Xbox Series X/S).
The midnight launch for the Nintendo Switch 2 took place at locations including GameStop (GME) and Best Buy (BBY), with retailers stocking additional supply for customers who weren’t able to pre-order. Even before the big event, investors have been responding to the excitement surrounding the console, with ADRs of Nintendo (OTCPK:NTDOY) soaring 43% YTD. The enthusiasm has also helped Nintendo reach a market value of close to $100B, becoming the eighth largest publicly traded company in Japan.
SA commentary: “Despite tariff challenges, Nintendo’s strategic pricing and accessory adjustments should mitigate impacts, and I expect 17M units to be sold by March 2026,” writes SA Analyst Compounding Chef. “Nintendo’s FY 2025 sales and profits dropped as Switch 1 ages, but these numbers should not be relevant in the current context,” adds Investing Group Leader Best Anchor Stocks, discussing the latest earnings released in May. “FY 2026 guidance seems conservative, but it’s normal to see margins drop initially.”
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