{"id":17191,"date":"2020-02-03T18:50:39","date_gmt":"2020-02-03T18:50:39","guid":{"rendered":"https:\/\/www.dfcint.com\/dossier\/?p=17191"},"modified":"2020-02-03T18:50:39","modified_gmt":"2020-02-03T18:50:39","slug":"nintendo-sales-strong-stock-drops","status":"publish","type":"post","link":"https:\/\/www.dfcint.com\/dossier\/nintendo-sales-strong-stock-drops\/","title":{"rendered":"Nintendo Sales Strong\/ Stock Drops"},"content":{"rendered":"<p>Last week Nintendo announced its earnings for the nine months ending 12\/31\/2019.\u00a0 As expected Nintendo sales were strong.\u00a0 However, they were not strong enough to please investors who punished Nintendo stock.<\/p>\n<p><a href=\"https:\/\/www.dfcint.com\/dossier\/nintendo-switch-should-dominate-holiday-2019\/\">DFC Intelligence had forecasted a strong holiday season for the Nintendo Switch<\/a> and it delivered.\u00a0 For the second half of 2019, Switch hardware sales were up 31% over 2018.\u00a0 The new Switch Lite sold over 5 million units.\u00a0 Revenue met forecasts and Nintendo raised its earlier profit forecast for the fiscal year ending 3\/31\/2020.\u00a0 They also raised forecast for Switch hardware and software sales.<\/p>\n<blockquote class=\"wp-embedded-content\" data-secret=\"fE3ONadBeB\"><p><a href=\"https:\/\/www.dfcint.com\/dossier\/nintendo-switch-should-dominate-holiday-2019\/\">Nintendo Switch Should Dominate Holiday 2019<\/a><\/p><\/blockquote>\n<p><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" src=\"https:\/\/www.dfcint.com\/dossier\/nintendo-switch-should-dominate-holiday-2019\/embed\/#?secret=fE3ONadBeB\" data-secret=\"fE3ONadBeB\" width=\"600\" height=\"338\" title=\"&#8220;Nintendo Switch Should Dominate Holiday 2019&#8221; &#8212; DFC Dossier\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<p>So how did the market react?\u00a0 Over 5 days, from the middle of last week to Monday,\u00a0 Nintendo stock fell about 6%.\u00a0 Clearly the market was expecting Nintendo sales would be more impressive.<\/p>\n<p>At DFC Intelligence, we remain as bullish as ever on Nintendo.\u00a0 However, we are looking at the company&#8217;s long term competitive position and not its short term stock price.<\/p>\n<p>Nintendo is finding a way to compete in a world filled on one end with mobile devices and free games.\u00a0 On the other side is the high-powered game hardware, PC systems and Sony and Microsoft consoles.\u00a0 Nintendo is reaching an audience that is not satisfied with either extreme.<\/p>\n<p>Digital sales is just starting as a growth area for Nintendo.\u00a0 For the nine months ended 12\/31\/2019, downloadable versions of packaged software were nearly 20% of total software sales.\u00a0 This was up from under 15% the previous year.\u00a0 Traditional mobile has not been a major category for Nintendo, but the Switch is becoming a system for digital software sales.<\/p>\n<p>Market expectations about Nintendo are often unrealistic.\u00a0 The company has found a nice niche in the video game business.\u00a0 Growth will depend on how much that niche can grow over the next few years.\u00a0 It will not be something that is fast or sudden.\u00a0 However, it should be solid and steady.<\/p>\n<p>For regular updates on Nintendo and other major players in the game space be sure and check out the <a href=\"https:\/\/www.dfcint.com\/wp-content\/uploads\/2019\/08\/dfcintelligence_flyer.pdf\">DFC Intelligence Executive Briefing Program<\/a>.<\/p>\n<p><img loading=\"lazy\" class=\"alignnone size-full wp-image-17193\" src=\"https:\/\/www.dfcint.com\/dossier\/wp-content\/uploads\/2020\/02\/nintendoswitchchange.png\" alt=\"Nintendo sales\" width=\"752\" height=\"745\" srcset=\"https:\/\/www.dfcint.com\/dossier\/wp-content\/uploads\/2020\/02\/nintendoswitchchange.png 752w, https:\/\/www.dfcint.com\/dossier\/wp-content\/uploads\/2020\/02\/nintendoswitchchange-150x150.png 150w, https:\/\/www.dfcint.com\/dossier\/wp-content\/uploads\/2020\/02\/nintendoswitchchange-300x297.png 300w\" sizes=\"(max-width: 752px) 100vw, 752px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last week Nintendo announced its earnings for the nine months ending 12\/31\/2019.\u00a0 As expected Nintendo sales were strong.\u00a0 However, they were not strong enough to please investors who punished Nintendo stock. DFC Intelligence had forecasted a strong holiday season for the Nintendo Switch and it delivered.\u00a0 For the second half of 2019, Switch hardware sales [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":17194,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[168,78,56],"tags":[6,12,48],"_links":{"self":[{"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/posts\/17191"}],"collection":[{"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/comments?post=17191"}],"version-history":[{"count":1,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/posts\/17191\/revisions"}],"predecessor-version":[{"id":17195,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/posts\/17191\/revisions\/17195"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/media\/17194"}],"wp:attachment":[{"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/media?parent=17191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/categories?post=17191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dfcint.com\/dossier\/wp-json\/wp\/v2\/tags?post=17191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}