Nintendo Switch: Stock Price Up, Inventory Low

30th March, 2017 by

Nintendo Switch, the newest console released by Nintendo, was launched officially Friday, March 3, 2017. Launch included 31 European territories, South Africa, the US, Canada, and Japan. Nintendo Switch was originally codenamed as Nintendo NX, and was first revealed in March 2015. Nintendo claims Switch is designed to provide users with more time to play the games they love, by designing a transformable console from home console to portable system in a snap. Sales have been successful in the month since release; Nintendo stocks are on the rise and inventory levels of the Switch are low. But are all users as happy as the numbers claim them to be? And is the Switch worth the investment in these early stages of the game? Find out here.

Initial Doubts

In January 2017, when Nintendo released the Switch’s launch lineup and pricing – investors did not like what they saw. The day after the Nintendo Switch was unveiled, shares of Nintendo fell by 6.5% due to the lackluster reveal for the console. There was a long list of unanswered questions after the announcement video of the console. Investor didn’t see that early sales would be successful enough to support the transformative device. Moreover, there were fewer than a dozen titles to pair with the Switch once on sale, which represents half what Wii-U had when it debuted and was not enough to help the Wii-U perform well at early release quarters.

Surprise Success

From its launch date until now, Nintendo Switch has been in high demand. Nintendo sold 1.5 million units in the first week. According to GameStop’s COO, Tony Bartel, “the demand is incredibly strong” for Nintendo Switch, explaining that “as soon as we get it into our stores it’s out within hours.”

This success is mostly supported by the high sales of The Legend of Zelda: Breath of the Wild, which solely created for Nintendo Switch.  It is impossible to separate out such success with Zelda, as some people might not be wanting the actual console, but rather wanting to play specific Nintendo titles. It speaks volumes that players are willing to forgo the cost for a Nintendo owned character game. But, either way, Nintendo benefits and Switch sales are going much better than originally planned.

Problems Ahead?

By reviewing the performance of Wii/Wii-U in past years, somewhat considered a failure in Nintendo’s history, Nintendo Switch might face the same problem once Zelda and other hot titles fade. Nintendo must be able to prove that the Switch is worth a purchase on its own merits, and keep on updating Switch-only games.

In the recent week, many users have been complaining of memory usage and bandwidth heavy requirements for games. Polygon reports, “While PlayStation 4 and Xbox One games require installs even when playing games on disc, that a Switch title arrives with a similar download has many Nintendo fans baffled.” Customers are beginning to notice that many of the Switch games are costing more than their PS4 and XBox counterparts.

While some frustration is to be expected in the early days of console release, Nintendo Switch might be holding off on for a few more months before purchase. We can expect that prices will decrease, product inventory will increase, while the game quality and quantity should improve.

What are your thoughts? How do you feel about your Nintendo Switch purchase? Happily ever after or still battling big bosses?