Nintendo Switch

Nintendo Switch

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Nintendo's business performance, which had been struggling for several years, soared upon the release of the Switch. By May 23, 2017, the success of the Switch's launch raised Nintendo's stock price to its highest levels in seven years, and an increase in price of over 100% from the previous year. However, the price still trailed Nintendo's peak price by about half, back in 2007 when it had just released the Wii.[378] Nintendo's stock was further boosted a few days later to meet its eight-year high following Capcom's announcement of plans to release the popular Monster Hunter XX for the Switch.[379]

In September 2017, Nintendo announced a partnership with Tencent, the leading publisher for mobile games in China, to bring their title Arena of Valor, the international version of their mainland Chinese game Wangzhe Rongyao, to the Switch following its December 2017 release in Western markets on mobile platforms. The game has an estimated 200 million players, most in China, and analysts anticipated that Nintendo will be releasing the Switch in China by 2019 as part of this deal. As a result, Nintendo's stock price rose overnight on the news by 7%, reaching a nine-year high.[380][381][382] Nintendo's stock reached its ten-year high shortly after the October 2017 expansion of Switch production to 2 million units per month and speculation that Nintendo would likely start selling the unit in China sooner than anticipated.[383]

Nintendo's quarterly reports, for the period ending September 30, 2017, showed a profit of $209 million, the first profitable quarter in several years, due to both success of the Switch and its mobile gaming strategy.[29] For similar reasons, its following quarter, ending December 31, 2017, was Nintendo's most profitable quarter since 2009, with year-to-year revenues increased by 177%.[384][385]

Nintendo's quarterly profit jumped by 44% in the first fiscal quarter of 2018 and their net profit totalled $274.9 million during April–June 2018 due to new titles being released for the Switch such as Donkey Kong Country: Tropical Freeze.[386] Sales of the Switch and its games helped increase Nintendo's operating profit by 30% during July–September 2018 and helped Nintendo reach its highest quarterly result in 8 years.[387]



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