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Nintendo’s Bright Outlook: Analysts Optimistic About the Switch 2 and Strong Software Sales Nintendo’s Bright Outlook: Analysts Optimistic About the Switch 2 and Strong Software Sales

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Nintendo (OTCPK:NTDOY) received an upgrade from Bernstein on Tuesday, with the investment firm citing excitement surrounding the next-gen console and better-than-expected software sales.

The Switch 2: A Bright Future

β€œPast console launch cycles have mostly been rewarding periods for investors,” said analyst Robin Zhu, referencing a median return of 33% holding 6 months before launch to 6 months after. β€œThe feedback we heard makes us think the Switch 2 will be more like the Switch and PS4 than weaker past cycles like the Wii U or 3DS.”

Optimism in Software Sales and Third-Party Support

Zhu, who upgraded Nintendo to outperform from market perform, added that there should be support from third-party developers, making it less likely that there will be a β€œsoftware air pocket” as there was with the original Switch in 2018.

Value in Other Japanese Video Game Developers

Zhu also weighed in on Bandai Namco (OTCPK:NCBDY) and Capcom (OTCPK:CCOEY) and said that both Japanese video game developers offer value at current levels.

Analysts’ Viewpoints

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