Nintendo (NTDOF) stock rallied on Wednesday after it was revealed the video game company played a part in the development of Kojima Productions’ Death Stranding 2: On the Beach a game exclusive to Sony’s (SONY) PlayStation 5. Specifically, subsidiary Nintendo Pictures aided Kojima Productions with the motion capture process for the game, which will hit shelves tomorrow.
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While it might be surprising to see Nintendo work alongside Kojima Productions on Death Stranding 2, this isn’t the first time that Nintendo Pictures has helped out the developer. It also worked alongside Kojima Productions on the first Death Stranding. That’s despite neither of the Death Stranding games being released for Nintendo consoles.
To be fair, Dynamo Pictures wasn’t a Nintendo subsidiary when it worked on the first Death Stranding. It was acquired by Nintendo in 2022 and quickly renamed to Nintendo Pictures. At that time, the subsidiary said it was dedicated to “producing visual content for Nintendo IP.” However, Nintendo doesn’t seem to mind it working with other developers.
Nintendo Stock Movement Today
Nintendo stock was up 2.92% as of Wednesday morning, building on a year-to-date rally of 57.93%. The shares have also risen 63.7% over the past 12 months. Today’s gain came alongside increasing trading activity, with 12,680 shares traded, compared to a three-month daily average of 5,710 units.
Investors may be excited about the prospect of Nintendo letting its subsidiaries work with other studios. It has a large collection of developers under its belt with decades of game-making experience. This type of work could also act as an extra source of revenue for Nintendo. Some might also see this as a sign that the Death Stranding games could come to the Switch 2.
Is Nintendo Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Nintendo is Moderate Buy, based on seven Buy, two Hold, and a single Sell rating over the past three months. With that comes an average NTDOF stock price target of $91.77, representing a potential 0.21% downside for the shares.
