Nintendo (NTDOF) stock was down on Tuesday despite reports of massive Switch 2 sales during the video game console’s first month on the market. The video game company updated its investor page early, showing 5 million Switch 2 units were sold during the month. While Nintendo revoked this update, it still provided insight into the console’s performance.
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At 5 million units sold in the first month, the Switch 2 has roughly doubled the 2.74 million original Switch units sold during that console’s first month. Investors will also note that it took the original Switch roughly four months to reach 5 million units sold.
Nintendo estimated it would sell 15 million Switch 2 units by March 2026. However, the console is on a pace that would see it surpass that number well before then. Even so, that doesn’t mean Nintendo has enough stock to meet the demand for the Switch 2. This could limit the console’s sales and leave stores without units for consumers to purchase until that shortage ends.
How Do Nintendo Switch 2 Sales Stack Up to Rivals?
Comparing Switch 2 sales to rival video game consoles, it’s breaking even more records as gamers are hungry for Nintendo’s products. To put its sales in perspective, Sony’s (SONY) PlayStation 5 sold 3.4 million units in its first month and it took two and a half months to reach the 5 million mark.
Unfortunately for Microsoft (MSFT), the Xbox Series X/S isn’t really in the competition. Sales data for its first month isn’t available, but we know it sold an estimated 32.98 million units in 54 months. That’s well behind the PS5’s 74.28 million units sold over the same period. It also makes it likely that the Switch 2 will surpass Xbox Series X/S within the next couple of years.
Even with all of this positive news, shares of NTDOF stock were down 2.96% on Tuesday. However, the shares were still up 60.57% year-to-date and 75.13% over the past 12 months.
Is Nintendo Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Nintendo is Moderate Buy, based on eight Buy, two Hold, and a single Sell rating over the past three months. With that comes an average NTDOF stock price target of $93.69, representing a potential 1.29% downside for the shares.
