The company found a surprise Christmas-season hit by making a miniature version of its classic Nintendo console, with games built in rather than requiring cartridges.
That device, the NES Classic Edition, was in short supply and is now discontinued. It retailed for $60, with $10 controllers sold to add on.
The SNES Classic Edition will sell for $80 and have two controllers included; it also promises a previously unreleased Super Nintendo game, Star Fox 2, along with a handful of era-appropriate games from the Mario family.
Between the higher price and the fact that Nintendo owns more of the games included on the system this time (14 of 21 titles), a similar frenzy for this new mini-console could give a boost to bottom lines.
Sales of the Switch have pushed Nintendo’s (OTCPK:NTDOF, OTCPK:NTDOY) market cap up to $48.9B on the Tokyo Stock Exchange, above Sony’s (NYSE:SNE) for the first time in nearly a year and the gaming giant’s highest valuation since October 2008.
Nikkei reports that the market cap jump occurred after Nintendo announced plans to ramp up Switch production and shipments this summer.
The company assures that the Switch shortage isn’t false scarcity but rather a supply issue.
Sony shares remain strong due to PlayStation 4 sales, but the Switch’s return and new Nintendo games launching this year could eat into Sony’s market.
Facing shortages of a heavily in-demand console, Nintendo (NTDOY +1%) says it plans to ramp up production of its Switch in July and August and apologizes for the shortfall.
The new production will coincide with the release of Splatoon 2, which the company teased in its E3 presentation last week. The push will include a special-edition console/Splatoon 2 bundle with pink and green controllers.
That production increase would raise stocks in time for holiday shopping. But the portability of the Switch console also means Nintendo is fighting for available parts with smartphone makers, notably as Apple pushes to ramp up a new iPhone this fall.
Sony (NYSE:SNE) has scotched speculation that it could follow Nintendo (OTCPK:NTDOY) into the hybrid games console market despite the runaway success of its rival's Switch.
"We've always made it possible for PlayStation to be played both inside the home and outside through the PlayStation network. Is there a new market? We don't think that's the case," said Sony's Atsushi Morita.
Capcom, the game studio behind major titles including the "Street Fighter" and "Resident Evil" franchises, announces the release of "Monster Hunter XX," on Switch, giving investors hope that sales of the console could get a boost.
"Monster Hunter" is not well known in western markets, but analysts say it is credited with helping sales of Nintendo's handheld 3DS console.
The WSJ claims that The Legend of Zelda will follow in the footsteps of Animal Crossing, Super Mario and Fire Emblem as the next big name Nintendo (OTCPK:NTDOY) franchise heading to your mobile device.
But the games have yet to add significantly to Nintendo's bottom line.
It earned less than ¥20B ($176.4M) from smartphone games in the fiscal year ended March 2017.
Nintendo (OTCPK:NTDOY) only takes a fraction of revenue from Pokemon Go, but its popularity has boosted its own Pokemon games as evidenced by the company's latest results.
Nintendo's profit for October-December reached ¥64.7B ($569M) from ¥29.1B a year earlier, returning the videogames maker to the black following a loss last quarter, and raising expected profits for its upcoming annual report.