Nintendo shares jump as Covid-19 gaming explosion continues
In a nutshell: While many businesses are suffering in the wake of the lockdowns, one industry that has thrived is the video game sector. With investors betting on more people turning to gaming as other activities struggle with Covid-19 restrictions, Nintendo has seen its market value rocket.
The Financial Times reports that Nintendo is currently valued at around $62 billion, more than Japan’s biggest bank, retailer, and chemical company. Analysts say the valuation reflects the possibility that Nintendo will have sold more than 75 million Switch units by the end of the current financial year—March 2021.
Nintendo’s share price has been on the up for some time now, and with yesterday’s 2.8 percent jump, it passed $467 for the first time since the release of the Wii in 2008. The latest increase comes as the company is expected to soon reveal its holiday season gaming lineup.
Even four years after release, Switch consoles are proving popular. The recent high demand combined with supply issues has left many consumers disappointed, forcing them to pay inflated prices charged by resellers. It’s also seen more cheap Switch-lookalikes hit the market. Should the 75 million unit sales prove accurate, it would put the hybrid’s lifetime sales around the same level as the 3DS family.
David Gibson, of Astris Advisory Japan, said in a note to clients that while the pandemic has been beneficial to Nintendo—thanks to more digital downloads and people playing games—the market could cool slightly as lockdowns ease and children return to school. On the other hand, it also means game manufacturers can return to full production.
If you’ve got a Switch and would like a free exercise game, Nintendo is giving away Jump Rope Challenge until the end of September.