JEFFERIES: Nintendo has another secret weapon besides the Switch


Nintendo‘s Switch game console boosted the its sales in the second quarter, but what’s really driving customers to its products is the company’s ability to make people love its franchises, according to Jefferies.

Switch, the company’s newest gaming console, has become a way for customers to tap into its iconic characters, like Mario and Zelda. The console’s initial launch came with a must-have exclusive Zelda game. It has since released a steady drumbeat of highly-rated games that constantly draw people to its new platform and keep it in the news.

“IP is our important asset,” the company said in an investor call.

Given the welcome reception of its recent game, “Super Mario Odyssey,” and the release of Animal Crossing for mobile, Nintendo will likely draw more fans in years to come, Jefferies analyst Atul Goyal said.

Nintendo not only raised its guidance for the year, but also announced that it would focus on “synergies” between its mobile and console games. This is one reason why Goyal sees “lots to look forward to next year.” The company has said before that mobile will become an important platform in extending long-term value for its video games and consoles.

Nintendo is up 78.92% this year.

Read more about how Nintendo’s newest platform can get it to 1 billion users here.

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