Nintendo (JP:7974) is hard at work preparing for the launch of the Switch 2, the successor to its massively successful handheld/home console hybrid. The company expects high demand for the upcoming console and wants to avoid shortages. This has it basing its demand for the video game device on the performance of its Switch 2 reveal trailer and its upcoming hands-on experiences in April.
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Based on the performance of the Switch 2 trailer on the Nintendo of America YouTube channel, the video game developer will need loads of consoles for the launch. The video has garnered over 20 million views, showing the huge hype surrounding the Switch 2. For comparison, Nintendo’s similar hardware trailer for the original Nintendo Switch has roughly a quarter of those views eight years after its release.
How Many Switch 2 Consoles Will Nintendo Need for 2025?
If those views are anything to go by, the Nintendo Switch 2 is poised for enormous sales when released later this year. That tracks with estimates from video game analyst DFC Intelligence, which expects console sales to range from 15 million to 17 million in 2025. For comparison, the original Switch sold 15.5 million units in its first year on the market, and the Switch 2 won’t be released until partway through this year.
Nintendo said it will continue ramping up production ahead of the Switch 2’s launch to meet demand. It’s also setting up supply chains to avoid chip shortages that kept it from shipping enough original Switch units at launch. This is also part of the company’s plans to tackle scalpers by having enough stock to meet consumer demand.
Is Nintendo Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Nintendo is Moderate Buy based on five Buy, two Hold, and one Sell ratings over the last three months. With that comes an average price target of ¥10,747.65, a high of ¥12,420.69, and a low of ¥7,712.85. This represents a potential 1.71% downside for Nintendo stock.
