Nintendo soars on the back of Switch 2

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Walking into Walmart the other day, we were greeted by promotional banners for the Switch 2. My nine-year-old son's eyes lit up. "Can we, can we, can we get it Dad?" he asked. I looked at him sternly and he knew the answer. "For Christmas perhaps," he said, "I know".

To be brutally honest, I'm not planning on it. The device is horrendously expensive relatively speaking – A PlayStation 5 costs less, it is far more powerful and the games are graphically more impressive. We already have a Switch console, which we use as a family on rainy days. Plus, I want both my kids to use their devices less. Yet, despite my protestations and harsh opinion of the product, it has actually been quite a success for Nintendo.

CHART 1 • Nintendo's hardware magic delivers again

The Switch 2 has propelled Nintendo's stock into the stratosphere, with shares surging 46% this year and adding $39 billion in market value. The gaming giant sold 5.8 million units in its first month alone – crushing the original Switch's launch numbers – despite pricing the console at $450, a hefty 50% premium over its predecessor.

This remarkable success story extends Nintendo's uncanny ability to time hardware releases with stock price surges. The company's shares hit fresh records in June as fans queued for hours from Tokyo to Manhattan, creating scenes reminiscent of early iPhone launches. What's particularly impressive is that Nintendo has achieved this whilst navigating Trump's tariff storm, which initially delayed US pre-orders as the company assessed the 10% levies on electronics imports. No wonder my son wants one.

Source: Orbis Investments

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