Nintendo shares reach 19-month high as Switch launches in China

Nintendo shares jumped to a 19-month high on Tuesday as Switch made its debut in China.

The platform holder launched its flagship Switch console in China with the help of local partner Tencent, with Switch Lite set to be introduced to the market at a later date.

Nintendo stock peaked at ¥46,990 ($433) in Tokyo trading on Tuesday, its highest intraday level since May 9, 2018, according to CNBC, before ending the day up 2.86% at ¥46,370 ($427), its highest close since March 30 last year.

With a suggested Chinese retail price of 2099 yuan ($297), Switch comes pre-installed with a demo of New Super Mario Bros. U Deluxe Edition, the system’s only launch title.

Mario Kart 8 Deluxe Edition and Super Mario Odyssey will be released in the “next few weeks” and the games will have a suggested retail price of 299 yuan (£43).

Nintendo and Tencent have said they’re working to localise many more games but that some titles like The Legend of Zelda: Breath of the Wild require more time as the process is more complicated.

It’s unclear how Switch will fare in China, a market dominated by free-to-play PC and mobile titles, with analysts’ estimates varying greatly.

“Nintendo’s Switch, however, offers something that PCs, other consoles or phones don’t have,” Kantan Games analyst Dr. Serkan Toto told CNBC. “It boasts a wide range of exclusive software Chinese users can’t get anywhere else. It has the most popular IP in gaming worldwide, especially Mario, Zelda or Pokemon.

“Nintendo and Tencent need time in China to cultivate a local fan base, build up a meaningful game library against regulations, and optimize sales,” Toto added. “It’s a marathon. But the launch is a start.”

Providing an update on Chinese launch plans for Switch in October, Nintendo president Shuntaro Furukawa said he didn’t expect the system’s release to have a significant impact on the company’s business results for the current fiscal year ending in March 2020.