Breaking into the Chinese market has supercharged Nintendo’s stock.
The stock market is often a strange place. To those who don’t participate in it (and even to those that do, frankly), sometimes it can seem like an illogical, if not completely random, state of affairs. Nintendo is a good example of this. Despite the resounding success of the Switch, their most successful console hands down since the Wii, with many predicting it could even outpace that system, Nintendo’s stock has been up and down, with some very dramatic dips, since its release. However, despite that, it did follow the very logical route of spiking recently, with the announcement that the Switch is coming to China.
We reported earlier that Nintendo is working with multimedia Chinese giant Tencent to officially launch a version of the Switch for the Chinese market. According to Reuters, Nintendo’s stock has seen a massive 17% jump since the announcement, with 12% of that literally being overnight since the official announcement on April 18th. Stockholders seem to be universally happy with the company, at least for now, for the first time in what seems like several years.
There’s really no word on when the system will launch in China, or what that version of the system could look like. The Chinese economy has grown into a huge one for entertainment, but the government also has many noted – and often significant – restrictions on what they allow in, so whatever process Nintendo will have to go through remains unclear at this time.