Nintendo’s Stock Rises By 20 Percent Thanks To the Switch
Critics and investors alike were wary of the Nintendo Switch when the company first unveiled the platform in January of this year, but its strong launch has won over both fans and financial markets. Whereas the company had been experiencing heavy losses during the lifespan of the Wii U, the Switch has boosted Nintendo’s stock by about 20 percent in the weeks following its launch on March 3.
Early sales of the Switch have been even stronger than the company initially hoped. Nintendo President Tatsumi Kimishima said that the company hoped to move 2 million units between March 3 and the end of the month. Instead, the company sold about 2.4 million. These sales were helped, in large part, due to Legend of Zelda: Breath of the Wild.
While the Switch’s early sales are certainly welcome news to the company’s shareholders, it remains to be seen if Nintendo can continue this upward swing. Plenty of consoles, including Nintendo’s own 3DS, have launched to strong sales only to see them flounder in the following months. If Nintendo wants to maintain their momentum then they’ll need to ensure that the system has enough software to maintain user interest. Nintendo has the best first-party lineup in the business, but, in order to succeed, they’ll also need third-party games.
Eric is an avid tech junkie, gamer, and comic fan. When he's not working on his PC, you'll find him at your local comic book shop.