For nearly a year rumors of new Switch hardware consistently made the rounds. Numerous outlets claimed Nintendo was developing “Switch Pro” and “Switch Lite” models. We’re still waiting on the former, but Nintendo recently confirmed the latter. The new, smaller model will launch on September 20 with a price tag of $199. This announcement has investors excited, as evidenced by a recent surge for Nintendo stock.
Switch Lite boosts Nintendo stock
Nintendo stock jumped up by around 4.5% in Tokyo following the reveal. That’s the single best day Nintendo’s had on the stock market since April, and it pushed their value to its highest point in 9 months. According to the latest numbers, Nintendo stock currently sits at $48.57 a share. The last time the company was valued that highly was June 1, 2018, over a year ago. This brings Nintendo’s total market cap up to over $45.7 billion. That’s still nowhere near the company’s massive market cap during the height of Wii and DS, but just a few short years ago Nintendo was only valued at around $12 billion.
So why are investors so happy with the reveal of Switch Lite? Historically, “Lite” versions of Nintendo hardware have provided a sizable sales boost. The standard Switch still costs the same $300 that it did at launch, and many potential consumers need a cheaper option. Meanwhile, sales of the 3DS family of products have dwindled down to almost nothing. The healthy state of Nintendo Stock shows that investors expect Switch Lite to be a big seller. Getting Switch into more hands also means an increase in software sales. For example, investment firm Wedbush Securities raised their Nintendo software expectations from 125 million to 140 million.