- Nintendo Switch saw a decline in sales this year.
- However, the company’s stocks soared to a new high since the Nintendo Wii era in 2007.
- The anticipation of a new console and Saudia Arabia’s investment in the gaming giant were major parts of this new record.
- The numbers contributed to the Nikkei stock index surging to a record high after 34 years.
Nintendo has found new life since the launch of its hybrid console. The Nintendo Switch combines handheld and home console gaming to offer something unique in the market, standing out in the highly competitive gaming industry.
While the console sales declined this year, Nintendo still managed to record an all-time high figure for its stocks recently.
Why it matters: Last month, its shares reached a new record for the first time since 2007, but the new year has brought an even bigger record for Nintendo.
The gaming giant went beyond market capitalization of over 10 trillion yen, adding up to nearly $69 billion.
Nikkei shared its report on Wednesday, where it saw a massive surge in its stock index. The Nikkei stock averaged an increase of around 2.01 percent, a massive peak for the company that has not been observed in the past years.
The last time Nikkei reached the same level was in February 1990, and much of the credit for these results goes to Nintendo. Nikkei explains consumers are excited for the Nintendo Switch 2, even if it may not be revolutionary.
Another major factor was the oil money. Recently, Saudia Arabia has increased its investment in Japanese studios, including Nintendo. The crown prince owns nearly 10% of the company’s shares, making him among the most notable investors.
Finally, Nintendo’s efforts in expanding to the film industry brought a lot of results. Super Mario Bros became an instant hit last year, encouraging the gaming giant to consider more adaptations for IPs like Legend of Zelda.
Nintendo’s first-party lineup was also firing on all cylinders in 2023. Zelda: Tears of the Kingdom, Metroid Prime Remastered, and Super Mario Wonder led the most compelling first-party lineup of the year.
Meanwhile, older games continued to sell well, allowing Nintendo to pull ahead of the competition in terms of first-party game sales.
Nintendo might struggle to reach similar highs in 2024, but its future holds much promise.
The new console alone has everyone interested, and potential reveals for games like a new 3D Mario title and Metroid Prime 4 should ensure the Nintendo Switch 2 receives a warm welcome from the industry.
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[News Reporter]
Bawal is an MBBS student by day and a gaming journalist by night. He has been gaming since childhood, growing fond of the creativity and innovation of the industry. His career as a gaming journalist started one year ago, and his journey has allowed him to write reviews, previews, and features for various sites. Bawal has also been cited in reputed websites such as Screenrant, PCGamesN, WCCFTech, GamesRadar, and more.
