The Nintendo Switch’s huge success in the console battle is translating into the stock market arena.
According to a report from Nikkei, the company’s market capitalization increased to 5.44 trillion yen last Friday, June 23. The value is roughly equivalent to $48.9 billion USD, which was higher than rival Sony’s $48.5 billion.
The report said that the surge in Nintendo’s stock value was powered by the flagship console and its popularity. The company’s shares increased by three percent to 38,580 yen, before closing at 38,440 yen.
The entry of investors was buoyed by the company’s statement last Thursday that it will increase the Switch’s shipment next month until August. The ramp up was a response to the shortage in the unit’s stocks, the report added.
Meanwhile, a report from Gamespot noted that this was the first time Nintendo beat Sony’s market cap in 11 months and also 10 years ago. In 2007, Nintendo’s Wii console helped push the gaming giant’s market cap to surpass Sony’s.
As for the Switch’s shortage issues, Nintendo apologized last week and gave their word that they are working on it. “For autumn and beyond, we will continue to work to ensure that as many products as possible can be delivered to our customers towards the end of the year,” said Nintendo.
Furthermore, the Switch did not just beat Sony’s PlayStation 4 (PS4). It also surpassed Microsoft’s Xbox One in sales for two months in the U.S. this year. The PS4, though, reclaimed the top spot for the month of June. It had also sold over 60.4 million units, according to Sony.
In May, Games Industry reported that the Switch exceeded 280,000 units sold for the month. This helped the overall industry sales grow by 10 percent to $636 million in total. The numbers coming from the NPD group reflected a 37 percent jump in hardware sales, reaching the $195 million mark.
“The industry drove the highest April hardware dollar sales since April 2011,” explained NPD analyst Mat Piscatella. “Nintendo owned the top 2 platforms in unit sales for the month, with the Nintendo Switch at #1, followed by NES Classic,” he added.