Who doesn’t know the Japanese multinational of electronics and video games Nintendo (OTC: NTDOY)? It is still one of the richest and most valuable companies in the Japanese market. In addition, it has been doing good business with large partners such as The Pokémon Company and HAL Laboratory for years. How interesting is Nintendo’s share when the two biggest competitors Sony and Microsoft launch a new console on the market?
Black Friday mania is already visible
The strength of Nintendo over its competitors is that it has built a fan base for a longer period of time, since its first console from 1984 (Famicon). This while Sony released its first console in 1994 (PlayStation 1) and Microsoft in 2001 (Xbox). The games also have an exclusive and original character that almost everyone knows. The Nintendo Switch and Lite variant are the perfect consoles for fun in groups or families. With Thanksgiving, Christmas and a pandemic that is out of control for now, Nintendo can expect a lot of revenue for the November and December months, having had problems with production earlier this year due to the global event and increasing demand especially for Animal Crossing: New Horizons.
This means it can count on a rise in value of the share this weekend with the start of Black Friday, which will continue for an entire week at some retail chains. Amazon in particular is touting the Nintendo Switch more favorably during this period, which was received with great cheer by various game websites. For $299, the home console comes with one of the most legendary games ever, Mario Kart ™ just given a new look. In addition, many games will also be sharply discounted on major websites such as Walmart, Best Buy and Gamestop.
Do Sharp and Nintendo work together in Malaysia?
But there is more than just the forecasts surrounding the Black Friday promotions. Nintendo adds Sharp as an assembler for popular switch console. By switching part of its production to a factory in Malaysia, the output must be straightened out again and every household should in principle be provided with a console. The plant in Malaysia under discussion is owned by Sharp. According to various sources, Nintendo’s main assembly partner Foxconn Technology Co. – which has a significant share of Sharp – the two companies to come to an agreement. Interestingly, Sharp will be re-added to the Nikkei 225 Stock Average next week after a four-year absence. This contributed to the positive closing of the shares of both Japanese companies yesterday.
Earlier this year, Foxconn Tech was asked by Nintendo to look for alternative production locations outside of China to protect itself against the trade war between the United States and China. As a result, the company recently sent Switch orders to Sharp, as the company had additional capacity available in Malaysia.
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