A leak surfaced on the web last month which revealed that Nintendo is planning to launch a Lite version of the highly popular Switch console. Well, it looks like the leak was true because Nintendo has announced that Switch Lite will launch September 20 and the internet has been going crazy about the new console ever since. Even though some Nintendo fans might not like Switch Lite, Nintendo’s investors are loving it because the company’s stocks have risen by up to 4.5% in one single day.
Nintendo Stocks are Rising
According to the folks at Financial Times, the reveal of Switch Lite has boosted the company’s popularity and Nintendo’s shares have reached a nine-month high of 4.5%. The peak of Nintendo’s stocks is 41,780 Yen and it looks like it will keep rising during the upcoming days.
“Investors should see the switch as a way for Nintendo to substantially increase the install base and prolong the life-cycle of the console for years. The device will be a mega hit,” said Dr. Serkan Toto who is an analyst for Kantan Games.
Affordable Price Tag
The reason why investors are loving the new Switch Lite so much is because it costs $100 less than the original Switch model. This means that more people are going to afford the new Switch Lite and that the lightweight console might be able to target younger audiences.
If you add here that Switch Lite owners are basically required to get a Nintendo Switch Online subscription, then we think it’s safe to say that Nintendo will almost double its profits in the years to come.
In addition, Michael Pachter who is a renowned analyst for Wedbush Securities is predicting that Switch Lite will sell 8.5 million units in 2019 and 11.5 million in 2020.