Sep. 17 at 5:02 PM
Nintendo’s Switch 2, launched earlier this year, has seen strong demand, but expectations for its long-term impact may be too high. Initial supply struggled in Japan, and U.S. preorders at GameStop faced technical issues. Japanese shares have risen 46% this year, while ADRs are up 57%.
Wedbush analyst Alicia Reese cautions that three-year unit sales forecasts may be overheated, expecting Switch 2 to surpass Switch 1 by 10 million units and Wii by 6 million—numbers she finds unlikely. Higher prices, fewer blockbuster launch titles, and tougher competition from companies like Roblox add to the risk.
Reese downgraded Nintendo to neutral, noting the stock has already reached Wedbush’s 14,000 Yen target. Despite tariff uncertainties, the console remains at
$449.99, though accessory prices rose, with potential further increases due to Vietnamese tariffs.
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