Nintendo Switch is not the Wii U as the Company Doubles Production of the Console
It seems like the Nintendo Switch is playing with power.
Nintendo has announced that they will double production of the new Switch console from 8 million to 16 million in their next fiscal year beginning on April 1. This comes on the back of news that Nintendo had sold nearly 1.5 million Switch consoles in its first week of sales. This is undeniably great news for the company, as Nintendo's previous Wii U system sold 3 million units in its launch quarter only to fall flat on its face selling slightly less than 3 million units in the next 12 months.
Nintendo specifically mentioned that better than expected demand for the Switch console has lead them to this decision to ramp up production. This should also help the company draw third party support from some tepid partners who sat out the Wii U's product cycle. Shares of Nintendo were up 1.69% in Japanese trading and the stock is up nearly 10% since the day before the Switch console launched.
From a technical (chart-based) perspective, Nintendo shares have an actionable trading signal. Shares of NTDOY (the company's American Depository Receipt) have formed an "inside month and up" buy signal above $26.79/share. There are still nearly two weeks left to this monthly trading signal.
Nintendo's stock is still stuck inside of the range formed during the Pokemania of July 2016, but after trading inside month and down in December of last year, we have our first buy signal. NTDOY traded between $24.12/share and $27.89/share in January. Last month, the stock traded within that range with a low of $24.68/share and a high of $26.76/share. The current buy signal became actionable last week when the stock traded above $26.76/share and today's news confirms what the chart was already telling us.
Current momentum indicates that the stock is headed for the $30/share level. It is still a long way back to the 52 week high of $38.25/share, but it is hard to not be more bullish on this stock given today's news. Traders still have time to play NTDOY for a trade this month and as I have previously indicated, I strongly believe that Nintendo is a great long term investment.
Full Disclosure:
At the time of this article, Asif A. Khan, his family members, and his company Virtue LLC had the following positions:
Long Nintendo via NTDOY ADR
Long Apple via AAPL shares and options
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replyAsif Khan posted a new article, Nintendo Switch is not the Wii U as the Company Doubles Production of the Console
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Aww yeah!!!
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I'm so happy they got a good start with this. My biggest fear was Nintendo doubling down on the Wii target audience after the WiiU. The only hint at that is 12switch and that thing doesn't seem to pick up any pace, with it going on sale even prior to release over here while everything else if overpriced.
Also the more successful it is, the longer it will be around, the higher the chance my favourite Nintendo franchises will re-emerge =D -
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I am very happy with Nintendo Switch. Instant on, the ability to Switch *snaps* between TV and handheld, and Zelda have made this a delightful launch. I am about of a Nintendo fan, and this is really just great to see. It was easy to count them out last year, but man. Great to see them getting back to business.
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*a bit
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What else are you playing? I took a look at the catalog and didn't see anything interesting that wasn't already available on Playstation or PC.
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Didn't you see above? I'm only playing Zelda. It's the only game for sale.
But seriously, if I must prove myself to you...
Snipperclips is the definition of interesting that isn't available on Playstation or PC. I've actually had a lot of fun playing 1-2-Switch with friends and family, some of whom are more interested in the system after playing some of the mini games. We also own Super Bomberman R but I don't think it was worth the cost, I didn't buy it though so whatever. Four player Bomberman is still as fun as ever. I'll be purchasing Fast RMX when I have a little more expendable money since I enjoyed the original version on the Wii U a lot and this version is vastly improved. What are you fucking playing?
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Mario Kart in April, Splatoon 2 summer, Mario Odyssey by the holidays
In between those will be loads of formerly mobile and indie titles-
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Looks like they got some of the neo-geo games now too.
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I could argue the PS4 didn't really hit it's stride until Uncharted 4 was released last May. Prior to that it had some good stuff like Bloodbourne, but mostly it was a bunch of cross platform games that didn't really give you a reason to buy a PS4 specifically, especially if you had a decent PC or XBone that could play Fallout 4, Witcher 3, GTA5, etc. Since last May the library has filled out and is absolutely worth buying of course.
Switch on the other hand has Zelda and Mario in the first 9 months, plus Splatoon 2 and MK8. It's not that there's no games, it's can they keep the awesome games coming year after year. E3 and TGS should be interesting.-
Yup, I'm hoping to hear about some stuff comin early next year at E3.
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Zelda will take a long time to play through unless your goal is to finish by speed run or you have a ton of free time.
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Awesome, glad this is turning out well for them.
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but when can i get one????
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https://youtu.be/ebk-y2FdAEQ
It is cereal time, Pouya!-
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Oh it was special!
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I dream of a day when they bring back the cereal.
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