After rising to their highest on Friday, Nintendo Co. shares maintained their surging spree and rose 3.4 percent in early Monday trading. This happened after the successful launch of Switch, which is a hybrid console aimed at bringing the two different worlds of home gaming and mobile together.
The company shares were having a tumultuous time from past some time. While they skyrocketed after the launch of games like Super Mario Run and Pokemon Go, they slumped after the announcement of Switch probably because of the incorrect assumption of investors that the console gaming days are getting over.
The reality, however, is totally different. Mobile games are no doubt cheaper to develop, but making money from them is a tough job as when it comes to gaming the mobile platform is saturated. Console gaming, on the other hand, can give decent returns if the games are developed within sensible budgets.
The success of this hybrid console can be judged from the fact that the demand outstripped the supply in no time. With most of the retailers’ exhausting both their same-day inventory and pre-order in a matter of few hours, it is now clear that the company’s goal of selling two million units by this month end will be a reality soon. The gaming fans waited in cold in Toronto and New York to buy it at midnight sale events.
An analyst at Jefferies Group, Atul Goyal said, “There’s a sigh of relief today that the actual launch has gone smoothly so far. We have to wait and see if any major issue comes up by the end of the week.” There were some rumours regarding a potential defect in the Switch, which made the investors worried resulting in the share hitting south for four straight sessions prior to Friday.
Fans are excited about the new invention from Nintendo and one of the fans Adachi said, “I’m most excited about its portability. It’s different from smartphones because it has chunky buttons useful for action games. I’m looking forward to using it on the Shinkansen (bullet train) as I travel a lot between Osaka and Tokyo.” The switch can be considered as a tablet with wireless controllers. The user has the flexibility of using it on its own or plugging it to a TV.
The Kyoto-based company has brought its latest invention in the market for $300 and it is seen as the biggest bet of the company in recent years especially after the flop show of Wii U console.