In today’s edition of our newsletter, we take a close look at the latest developments at Nintendo, a giant in the gaming industry. The focus is on the raised sales forecast for the Switch console, the ongoing success of blockbuster titles, and the speculation about a possible successor to the popular console.

Nintendo raises sales forecast Nintendo has announced on Tuesday, February 6, 2024, an increase in its sales forecast for the current fiscal year. The company now expects to sell 15.5 million units of its Switch console, an increase from the previous forecast of 15 million units. This follows a quarter in which Nintendo exceeded market expectations with a net sales of 589.6 billion yen and a net profit of 136.7 billion yen. Interestingly, despite a 6% decrease in net sales compared to the previous year, Nintendo saw an 18% increase in net profit.

Six-month chart for Nintendo Nintendo rises and stands out strongly from the blue 50-day line and the red 200-day line. (Source: Stock Screener)

Successes and new releases A major driver of this success is „Super Mario Bros. Wonder“, which has sold an impressive 11.96 million copies since its release in October 2023. The success of the Mario movie has also boosted the sales of older titles such as „Mario Kart 8 Deluxe.“ Fans and investors are eagerly awaiting the announced new games featuring characters from the Mario world, including Donkey Kong and Princess Peach, which are set to be released in the first quarter of this year.

Looking to the future: A successor for the Switch? In addition to its current successes, the industry is now looking to the future of the Switch console. Analysts and investors are speculating about the announcement of a successor. Nintendo’s stocks, listed on the Tokyo Stock Exchange, have already risen by about 14%, driven by the expectation of a new console and a broader rally in Japanese stocks. The company has raised its financial forecast and expects a net sales of 1.63 trillion yen and a net profit of 440 billion yen for the fiscal year ending in March.

Conclusion Once again, Nintendo proves its ability to thrive in a fast-paced market. The raised sales forecast, the ongoing success of flagship titles, and the strategic planning of new releases strengthen confidence in the company. While speculation about the successor to the Switch console continues to create excitement, Nintendo remains an attractive investment for investors interested in the intersection of technology and entertainment.