Video game hardware and software company Nintendo (NTDOY) remains a hot topic among gamers and investors as rumors concerning the Switch 2, the company’s upcoming video game console, continue to swirl online. Leaked details, all of which should be taken with a grain of salt, have fans excited as they await official news about the console’s launch.
Don't Miss Our New Year's Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
The first big rumor worth mentioning today is the potential hardware specs of the Nintendo Switch 2. This rumor claims the home/handheld console hybrid will offer power similar to Sony’s (SONY) PlayStation 4 and PlayStation 4 Pro. According to this rumor, the Switch 2 will be comparable to the base PS4 in handheld mode and the PS4 Pro in dock mode.
While sporting the power of a last-generation console may leave some unimpressed, it’s important to remember this strategy already worked for Nintendo with the original Switch. Also, the graphical leap between the PS4 and PlayStation 5 is less profound than the PlayStation 3 to PS4, meaning Nintendo won’t be far behind its competition in terms of visual appeal.
4K Patches Could Bolster the Switch 2’s Launch Library
Another big rumor surrounding the Switch 2 is new patches for old Switch games. This claims that Nintendo is focusing on patches for certain Switch games that will boost them to 4K resolution while also allowing them to better take advantage of the Switch 2’s hardware.
This makes sense as gamers already know the Nintendo Switch 2 will be backward compatible with original Switch games. Nintendo introducing patches to improve performance for these games could help insulate the company against the issue many new consoles have, which is a lack of games at launch. This may help tide gamers over as they wait for Nintendo to flesh out the Switch 2’s library after its release. The rumor also claims these patches wouldn’t come at any cost to customers.
These rumors come as investors and gamers await the official reveal of the Switch 2. Earlier comments from company leaders claim this will happen before the end of Nintendo’s current fiscal year in March 2025.
Is Nintendo a Buy, Sell, or Hold?
Turning to Wall Street, there’s only one rating for Nintendo stock over the last three months and it’s a Buy. With that comes a $17.20 price target for NTDOY shares, representing a potential 17.17% upside.
