A report by the Wall Street Journal recently showed that Nintendo is in the early stages of forming a partnership with Chinese tech-giant Tencent in order to officially release the Switch in China. For several years, the Chinese government heavy stipulations on the gaming market, so consoles have never really had a foothold there due to actually being banned. But, the government has recently become laxer. As a result, news of the Switch coming to China has made investors extremely happy, as the Chinese gaming market is actually substantially big when looking at trends in the PC and mobile gaming sectors.
Nintendo stocks have jumped up by 12.72% over in Japan following the WSJ report. This is the highest percentage that the company’s stocks have hit in half a year, but it’s not all sunshine and rainbows.
Takashi Mochizuki, a tech reporter for the Wall Street Journal, recently published a tweet which contains a screengrab of an article which explains that “some caution [is] advised”, referring to investors. While investors may be happy at this time, the article warns that the reported deal between Nintendo and Tencent is still in its beginning stages and has a ways to go before everything is fully set in stone.
— Takashi Mochizuki (@mochi_wsj) April 19, 2019
Nevertheless, investors will certainly be following the development of this situation very closely. Still, if all does happen to go well for Nintendo, the Switch’s global success does have the potential to be boosted much further than it already has.