Despite what one might see at first glance, Nintendo It is experiencing one of its best moments in its history. With success in multiple areas of entertainment, and investments by the Saudi Arabia Public Investment Fund, the Big N's shares have set a new record. However, One of the elements that has attracted the most attention is the fact that the Switch 2 has already generated income for the company.
According to Nikkei Asia, a media specialized in finance, Nintendo shares reached ¥7,902 yen, that is, $54 dollars, which helped the market capitalization of the company to exceed ¥10 trillion yen, that is, $69 billion dollarsfor the first time since November 2007. The stock average rose 2.01% on Wednesday to close at its highest level since February 1990.
This is due to several factors. However, The most striking thing is the expectations about the successor to the Switch. The 2017 console is a success, with more than 130 million units sold. In this way, rumors of a new console from Nintendo for this year have made investors willing to invest more in the Big N. the arrival of your next piece of hardware.
While it is true that at the moment there is no information on the successor to the Switch, rumors, speculation and leaks have indicated that this new console would go on sale this year, and everyone wants a piece of this pie. However, this is not all that has raised the company's value on this occasion, since its participation in other markets has also turned out to be positive.
Last year it came Super Mario Bros. to the cinema, and although the film failed to captivate critics, It did become the second most successful film of 2023, as it grossed more than $1.36 billion dollars. Likewise, it is expected that the live action adaptation of The Legend of Zelda be a success at the box office. As if that were not enough, we must not forget the amusement parks that the Big N opened worldwide, which have also attracted a large number of people.
Last but not least, The Saudi Arabian Public Investment Fund, or PIF, has invested heavily in Nintendo, to the extent that it is the largest third party investor, with 8.58% of the company's shares. As if that were not enough, this government body continues to invest in the video game industry, so it cannot be ruled out that it will have a larger piece of the pie in the future.
All this has led Nintendo to experience one of its best moments in history. Now we just have to see if the company is able to maintain this pace. On related topics, Nintendo would lend its IPs to other studios. Likewise, a very important rumor about the next Nintendo Direct is denied.
Editor's Note:
This is a very important moment for Nintendo. If it turns out that the successor to the Switch will not arrive this year, there is a risk that the shares will go down. In this world, companies and investors want to see money constantly, something that is not always the case for Nintendo.
Via: Nikkei Asia
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