Despite the divided opinions on Nintendo’s reveal of the Nintendo Switch Lite, company investors seem pretty stoked.
According to the Financial Times, the Switch Lite announcement caused Nintendo’s stock to rise as much as 4.5%, which is a nine-month high for the company’s shares.
With this new model priced at around $100 less than the original Switch model—and the historic success of Nintendo’s other handheld-only consoles—the enthusiasm makes sense. At first glance, it’s the perfect option for families who can’t afford a higher price point, or a younger audience with less disposable income. There’s significant potential for increasing Nintendo’s user base, according to Dr. Serkan Toto, Kantan Games analyst:
“Investors should see the Switch as way for Nintendo to substantially increase the install base and prolong the life-cycle of the console for years.
This device will be a mega hit.”
According to Wedbush Securities analyst Michael Pachter, the console supply may see similar shortages toward the end of the year as we’ve seen with other Nintendo console releases—he’s predicting 8.5 million units shipped in the current fiscal year and an additional 11.5 the following, basing it on a theory that the Switch Lite is “the right product at the right time.”
