Nintendo Co. Ltd.'s (TSE:7974, Financial) stock is rallying. In fact, the stock is up 38% year to date. This is all thanks to Nintendo's new console, dubbed the Switch. The Switch is a unique console as you can hook it up to a TV set and play it like a gaming console. You can also unhook it and play it like a handheld device.
The demand for the Switch hit the roof, so Nintendo had to double production just to keep up. The company originally planned to manufacture 8 million units, but the demand forced production up to 16 million units for the year.
Last April, the company announced 2.74 million Switch units were sold during the recent quarter, officially making it the fastest-selling console in Nintendo's history.
Nintendo is passing its good fortune on to its partners. For instance, chipmaker Nvidia (NVDA, Financial) is expected to report sales of $300 million to $400 million, most of which is from Switch sales. GameStop (GME, Financial), a gaming retailer, sold 1.2 million Switches in March and April. As a result, the company is expecting a 17% bump in sales compared to last year. In addition, Target (TGT, Financial) and Best Buy (BBY, Financial) also reported an increase in sales.
It seems everyone is surprised by Switch's success.
During the first month, unit sales were equal to those of the Wii and Wii U. While it was a good sign, no one was expecting it to be a sensation.
For Nintendo, developing Switch was not all fine and dandy. In fact, there were serious concerns about third-party game developers embracing the Switch. "Mario Kart 8" and "Zelda: Breath of the Wild" earned the highest praise from critics.
While Microsoft (MSFT, Financial) and Sony (SNE, Financial) continue their console war, Nintendo played the game differently. Instead of trying to develop a more powerful console with eye-popping graphics, Nintendo focused on versatility and uniqueness. With Switch, you can play it on your home TV, in your bedroom, on the road or even in the bathroom.
Critics of the Switch are quick to point out Nintendo's newest console will never keep up with the graphics of Xbox One and PlayStation 4. The truth is, they are not wrong. On the other hand, Nintendo is not trying to compete in that regard. Switch is capable of shelling out some nice graphics, however. For example, the Zelda game for Switch is simply beautiful and you will hardly find anyone complaining about the graphics. Add that to the fact Switch is a powerhouse in the mobile gaming world, and the pricing is spot on. This console will bring home the bacon for Nintendo and its shareholders.
If you are interested in purchasing Switch, keep in mind that there are already stores that are accepting Ethereum as a form of payment. If you need help with the conversion of money to Ethereum, then you might want to check out Buy-Ethereum.io. It seems like everyone is surprised with Switch's huge hit. Let’s wait and see how the trend will evolve in the coming months.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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