- Nintendo (OTCPK:NTDOY) is up 5.3% in U.S. trading after earning an upgrade to Outperform from Credit Suisse, which sees much stronger sales of its Switch console ahead.
- "We had previously expected the Switch to sell like a traditional console, but now expect it to sell more like a handheld," says analyst Keiichi Yoneshima, who's bumping a forecast of 70M unit sales through 2022 up to 130M units.
- Meanwhile, a deal for a Switch version of one of China's most popular games -- Tencent's (TCEHY -1.1%) Honor of Kings -- could set the path for a potentially lucrative entry into China.
- The Switch isn't currently sold in China, but that prospect seems closer now with the Tencent deal. Honor of Kings is called Arena of Valor in Europe and will be launched under that name in the U.S. later this year.