For decades, Nintendo ($NTDOY) was the video game company. They released the best-selling video games, game consoles, and handheld devices. They had widespread appeal to kids, teens, and their parents. Even their brand name was as iconic and recognizable as Coca-Cola and Microsoft.
In the last two decades, however, Nintendo’s popularity in the video game sector started to take a backseat to Sony and Microsoft, two companies late to the home console market. While they released consoles like the Gamecube and Wii, Sony’s Playstation and Microsoft’s Xbox platforms increased in popularity. These days, Nintendo’s Wii U sells far fewer consoles in comparison to the Playstation 4 and Xbox One, since it lacks the same features and graphical capabilities as those devices.
Now, after taking the mobile market by storm with their licensed Pokemon Go app, Nintendo is gearing up to release the Nintendo Switch, the company’s newest console. With the ability to take the console with you on the go and play it anywhere, the Switch’s could continue the company’s stellar year on the stock market.
But is Nintendo trying something that would compete with Sony and Microsoft…or following patterns that held them back in the last decade?
The Nintendo Switch is the company’s newest video game console.
Set for a release in March of next year, the system will directly compete with the Playstation 4 and the Xbox One.
The most popular game companies are already making games and products for the Switch.
When Nintendo announced they were going to talk about their new console (now revealed to be the Switch), their stock increased.
When they revealed the system for the first time on October 20th, their stock increased some more.
Since the Switch is powered by a Nvidia’s Tegra processor, Nvidia’s stock also increased.
Some investors believe that this radical new console is a step in the right direction for Nintendo and could further increase their popularity (and sales).
The video game market is worth billions of dollars, and a device that’s able to compete with the Playstation and Xbox could take a sizable chunk of that market.
Other investors, however, feel that the Tegra processor is underpowered and would hold the console back from catering to core gamers.
The Tegra is a computer processor that usually powers mobile and tablet devices. The Tegra processor inside the Switch would have to be super powerful and customized to have graphics like the Playstation 4, which could drive up the cost of the device.
The Switch isn’t due out for another few months, which means it will miss the crucial holiday season sales rush. After all, tens of millions of people own Playstation 4s and Xbox Ones, and millions more will buy them in the next two months. Yet with the recent success of Pokemon Go and the hype surrounding Nintendo’s first Mario game for the iPhone, the company is seeing a resurgence in popularity — and the Switch could amplify that.
Share this story with your friends who love Nintendo. Who knows? They might start playing Mario again!