The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
Nintendo shareholders are a patient lot, with the firm’s share price losing over 90% during the 2008-2013 period, only to consolidate those rock-bottom prices in the following two years. However, with the release of the Pokemon Go and, subsequently, Super Mario Run games, the giant appears to be waking from its slumber
While both games have been a success, they were unlikely to garner anywhere near the type of revenues associated with the good old days of the Nintendo Wii. So it is with great interest that on 3 March 2017 the gaming and investing communities watch the release of the latest Nintendo console, the Switch.
Aiming to be a bit of everything, this console is made for the home and on the go, both for the sofa gamers and those wanting the physicality of the Wii. The big question is, will this console spark the resurgence of the company, providing an opportunity for investors to pick up shares on the cheap ahead of a renaissance. It is going to come down to how popular this console is, and whether the company follows it up with enough titles to justify the platform becoming as profitable as the Wii.
The number one benefit of the Nintendo Switch is the demographic and target audience, which to some extent will help override some of the cons below. Unlike the Xbox One and PlayStation 4, Nintendo consoles are geared more towards a family and social audience. With the failure of its last machine, the Wii U, this audience has largely been starved of the type of fun, social games the Wii delivered, as Sony and Microsoft sought to target the hardcore gamers.
High end graphics evident within both the Xbox and PS4 are arguably best showcased in realistic games, with the top selling games for both consoles highlighting the emphasis is more on single-player (with an online multiplayer element), violence based games. Conversely, the game which comes out on top of the pile for the Xbox is the ‘Kinect Adventures!’ much more akin to a Nintendo offering than a typical Xbox game.