Nintendo shares jump 4.1% after Switch launch

Shareholders rejoice around Nintendo share scores this morning

Nintendo shareholders rejoice as the new Switch system debuts is a confirmed success! At the closure of the Tokyo Stock Exchange last Friday, the Nintendo shares were up by 4.1%, the biggest gain in a month. But most importantly, it shows that the new system from the Japanese company is massively adopted in households. This is quite a relief since the share had declined for four-straight days prior to that, a consequence of bad pre-launch reviews issuing concerns.

First numbers predict that Nintendo is on track to reach its goal of shipping 2 million Switch units by the end of the month. A much more effective trend that the sales of the Wii U back in November 2012. The overall launch success is also attributed to its main “console seller” title, The Legend of Zelda: Breath of the Wild, that scored a whopping 98 on Metacritic.

However, the game is not totally won for Nintendo, who still has to prove the success of the Switch system through the year.

“Convincing a wider audience to commit to the platform will take some work. A mixture of compelling content and features, price point, word of mouth and effective marketing will all need to come together to engage this broader audience.” – Piers Harding-Rolls, Head of Games Research at IHS Markit

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