Nintendo Switch Launch: Company Shares Rise 4.1% To Record The Biggest Gain In A Month

Nintendo Corporation's shares surged on Friday, recording their highest value in a month, following the debut of the company’s newest console. Shares rose as high as 4.1 percent, which has been the biggest gain of the month, and closed up 3.65 percent at the Tokyo Stock Exchange.

“There’s a sigh of relief today that the actual launch has gone smoothly so far. We have to wait and see if any major issue comes up by the end of the week.” Atul Goyal, an analyst at Jefferies Group, told Bloomberg.

He further added that assuming major defects in the console don’t emerge, the console should remain in high demand owing to the strongest gaming software line up since the launch of the Nintendo Wii around 10 years ago.

Before this, the company’s stock had declining for four straight days due to some early negative reviews of the Switch and concerns about potential defects.

The Switch managed to create a high demand and anticipation between its unveiling and launch. If early demand of the console is any indication, Nintendo might be on track to reach its goal of selling two million Switch units by the end of the year. Most retailers have run out of same day inventory stock and have declared it sold out even in terms of pre-orders, according to Bloomberg.

The Switch sells for $300 and its intial success would come as a huge relief for Nintendo, which is still smarting from the debacle of its previous gaming console — the Wii U. The Switch works like a gaming tablet with two detachable controllers on the side. It is a hybrid device that can be used both for multiplayer gaming using a TV or single player gaming on the console itself.

If the Switch does well, it could very well be the highlight of 2017 for Nintendo.

“While this early adoption phase is important to build sales momentum, it can only take the Switch so far. Convincing a wider audience to commit to the platform will take some work. A mixture of compelling content and features, price point, word of mouth and effective marketing will all need to come together to engage this broader audience,” Piers Harding-Rolls, head of games research at IHS Markit, told Bloomberg.