Nintendo (NTDOY) is preparing to release its Switch 2, likely in 2025, and one analyst is already predicting the company will beat Sony (SONY) and Microsoft (MSFT) in the next-generation console war. DFC Intelligence is the firm behind this claim, calling Nintendo the “the clear winner” of the battle before the Switch successor has even been revealed.
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According to DFC Intelligence, there’s only room for two console makers in the next-generation battle. The firm claims the Switch 2 will take the top spot, with Sony or Microsoft’s offerings following in second place.
This argument makes sense, as the Switch is used as a supplemental console by many gamers. That’s not to say it’s lesser, but that gamers would rather own a PlayStation 5 and Switch, or an Xbox Series X and Switch, rather than a PS5 and Xbox Series console. That could see the Switch 2 continue this trend in the next console generation, resulting in it reaching a wider audience than its rivals.
How Will Nintendo Compete with Sony and Microsoft?
The Nintendo Switch, and the upcoming Switch 2, fill a niche in the console war by offering a handheld/home console hybrid. Sony and Microsoft have tried to enter this market with their own accessories, but they haven’t been able to dethrone the Switch. However, rumors suggest Sony is developing a standalone portable PlayStation to help even the playing field.
Nintendo also benefits from its large library of intellectual properties (IPs). The hardware and software developer owns Mario, The Legend of Zelda, Xenoblade Chronicles, Metroid, Pokemon, and several other franchises with mass consumer appeal.
Is NTDOY Stock a Buy, Sell, or Hold?
Turning to Wall Street, only one analyst has covered Nintendo in the last three months. Four-star Jefferies analyst Atul Goyal has a Buy rating and price target of $17.20 for NTDOY stock. This represents a potential 17.97% upside for the shares.
