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Will Nintendo (NTDOY) Stock Gain from the Success of Switch?
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It seems Nintendo Co Ltd’s (NTDOY - Free Report) latest console, Switch is off to a spectacular start. New York Times reporter Nick Wingfield who interviewed Nintendo America president, Reggie Fils-Aim, provided snippets of the interview through a series of tweets. Shares of Nintendo were up 2.7% in the last trading session.
He tweeted “Fri-Sat sales for Nintendo Switch exceeded first 2-day sales in Americas for any system in Nintendo history. Next biggest was Wii.” However, no exact numbers were provided pertaining to the units sold in the last two days.
Nintendo launched Wii in 2006 during the holiday season and it became an instant hit with over 600K units sold over a period of eight days, reportedly. Wii has sold 100 million units to date. However, analysts observe that without the actual numbers it is difficult to gauge the success of Switch.
However, it is to be noted that Wii benefited greatly due to the holiday season whereas Switch was released much after the holiday season. If Switch sales have been phenomenal despite that, then it’s just what Nintendo needs at this point of time.
Also, Wingfield tweeted that The Legend of Zelda: Breath of the Wild has become “the best selling standalone launch title (i.e. not a bundled game a la Wii Sports) in Nintendo history.” This also boosted Switch sales. The new Zelda game has garnered fantastic reviews and has a Metacritic rating of 98 out of 100.
Switch, priced at $300, combines the functionalities of both conventional consoles and handheld devices. Switch is designed to attract casual gamers who are increasingly using mobile. Nintendo, after staying away from mobile gaming for long has now become highly focused on mobile games. Last year’s smash hit Pokémon Go gave it the much needed impetus.
Analysts observe that Nintendo was trying to protect its console business by not letting its well known characters like Mario and Zelda appear on mobile platforms. However, mobile games started emerging as a lucrative business option as titles like Candy Crush and Angry Birds caught the imagination of the world. Per an Apr 2016 report, research from Newzoo estimates the global games market to grow 6.6% to $118.6 billion in 2019, of which $52.5 billion will come from mobile games.
Such was the impact of Pokémon go that Nintendo shares grew 53.81% compared with the Zacks Toys/Games/ Hobby/Products industry’s gain of 31.74%, over the past one year.
Nintendo needs a hit in the form of Switch, following the debacle of its last console Wii U. There are many games like Mario Kart 8 Deluxe (April) and Super Mario (Nov-Dec 2017) that should boost Switch sales.
However, Switch has one nagging problem that might affect its sales. Per Forbes, Switch doesn’t have any means to transfer data to any other device or create a backup. Forbes quoted Nintendo saying “At this time, it is not possible to transfer save data from one Nintendo Switch system to another.” This might not go down well with gamers as “dozens of hours of progress could potentially be lost with no recourse”, point out Forbes analyst.
At present, Nintendo carries a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks in the wider technology space include Tech Data Corp , Leaf Group Ltd. and MeetMe, Inc. . While Tech Datasports a Zacks Rank#1 (Strong Buy), Leaf Group and MeetMecarry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the trailing four quarters, Tech Data, Leaf Group and MeetMe have yielded positive average earnings surprises of 7.90%, 27.94%and 36.07%, respectively.
Zacks' Top 10 Stocks for 2017
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Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
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Will Nintendo (NTDOY) Stock Gain from the Success of Switch?
It seems Nintendo Co Ltd’s (NTDOY - Free Report) latest console, Switch is off to a spectacular start. New York Times reporter Nick Wingfield who interviewed Nintendo America president, Reggie Fils-Aim, provided snippets of the interview through a series of tweets. Shares of Nintendo were up 2.7% in the last trading session.
He tweeted “Fri-Sat sales for Nintendo Switch exceeded first 2-day sales in Americas for any system in Nintendo history. Next biggest was Wii.” However, no exact numbers were provided pertaining to the units sold in the last two days.
Nintendo launched Wii in 2006 during the holiday season and it became an instant hit with over 600K units sold over a period of eight days, reportedly. Wii has sold 100 million units to date. However, analysts observe that without the actual numbers it is difficult to gauge the success of Switch.
However, it is to be noted that Wii benefited greatly due to the holiday season whereas Switch was released much after the holiday season. If Switch sales have been phenomenal despite that, then it’s just what Nintendo needs at this point of time.
Also, Wingfield tweeted that The Legend of Zelda: Breath of the Wild has become “the best selling standalone launch title (i.e. not a bundled game a la Wii Sports) in Nintendo history.” This also boosted Switch sales. The new Zelda game has garnered fantastic reviews and has a Metacritic rating of 98 out of 100.
Switch, priced at $300, combines the functionalities of both conventional consoles and handheld devices. Switch is designed to attract casual gamers who are increasingly using mobile. Nintendo, after staying away from mobile gaming for long has now become highly focused on mobile games. Last year’s smash hit Pokémon Go gave it the much needed impetus.
Analysts observe that Nintendo was trying to protect its console business by not letting its well known characters like Mario and Zelda appear on mobile platforms. However, mobile games started emerging as a lucrative business option as titles like Candy Crush and Angry Birds caught the imagination of the world. Per an Apr 2016 report, research from Newzoo estimates the global games market to grow 6.6% to $118.6 billion in 2019, of which $52.5 billion will come from mobile games.
Such was the impact of Pokémon go that Nintendo shares grew 53.81% compared with the Zacks Toys/Games/ Hobby/Products industry’s gain of 31.74%, over the past one year.
Nintendo Co. Price
Nintendo Co. Price | Nintendo Co. Quote
Nintendo needs a hit in the form of Switch, following the debacle of its last console Wii U. There are many games like Mario Kart 8 Deluxe (April) and Super Mario (Nov-Dec 2017) that should boost Switch sales.
However, Switch has one nagging problem that might affect its sales. Per Forbes, Switch doesn’t have any means to transfer data to any other device or create a backup. Forbes quoted Nintendo saying “At this time, it is not possible to transfer save data from one Nintendo Switch system to another.” This might not go down well with gamers as “dozens of hours of progress could potentially be lost with no recourse”, point out Forbes analyst.
At present, Nintendo carries a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks in the wider technology space include Tech Data Corp , Leaf Group Ltd. and MeetMe, Inc. . While Tech Datasports a Zacks Rank#1 (Strong Buy), Leaf Group and MeetMecarry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the trailing four quarters, Tech Data, Leaf Group and MeetMe have yielded positive average earnings surprises of 7.90%, 27.94%and 36.07%, respectively.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>