Best Buy (BBY) Will Likely Benefit from Nintendo Switch 2’s Record-Breaking Sales

Electronics retailer Best Buy (BBY) is likely to benefit from the record-breaking early sales of the new Nintendo Switch 2, despite consumer budgets being tight. Interest in the console remains strong, with demand being driven by its arrival eight years after the launch of the previous version. Indeed, in just its first four days, the Nintendo Switch 2 sold over 3.5 million units globally, setting a new company record for Nintendo (NTDOY) and making it the fastest-selling home video game console ever, even surpassing the early sales of both PlayStation 4 and PlayStation 5.

As a result, Jefferies expects Best Buy’s entertainment category sales to get a lift from the Switch 2 demand, along with increased sales of related products. “The Nintendo Switch 2 is off to a strong start toward its goal of 15 million units sold in the first year,” said analyst Jonathan Matuszewski. He noted that this momentum should benefit Best Buy, as the company also profits from the sale of accessories and games that go with the hardware.

Matuszewsk added that many major retailers are already showing that the Switch 2 is out of stock online, with Best Buy now completing orders only through in-store sales where supply is still available. Nevertheless, Best Buy shares are down over the past six weeks, as investors remain concerned about potential headwinds from tariffs. However, the strong demand for the Switch 2 could provide a timely sales boost for the retailer that could help offset these worries.

Is BBY Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on BBY stock based on nine Buys, nine Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average BBY price target of $80.53 per share implies 10% upside potential.

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