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$NTDOY Console Sales
Source: Visual Capitalist @visualcap on Twitter.

Historically, the stock price has followed console sales. Recently the stock price has reached ATH that haven’t been seen since 2008. While the number of console units sold today is approaching the Wii/DS era, the business today is much more attractive than it was 13 years ago, for the following reasons:
- The release of the Switch signaled a paradigm shift from a boom/bust console cycle to an iterative hardware model reminiscent of the iPhone. This allows Nintendo to retain and build their active customer base with new hardware launches and increases their audience for new game releases.
- The digitization of game sales means the process of selling new games is frictionless. Their vertical integration enables them to own distribution.
- Management has signaled that they will be aggressive with the growing the IP revenue line that currently stands at ~4% of total revenue. This can be seen with the launch of Theme Parks and eventually streaming content.
For me personally, the switch has been a fantastic console given its portability and price point for friends to also get it. $SNE and $MSFT have their consoles at similar price points to GPU options from $AMD and $NVDA. If Nintendo can keep this price point low and get more marquee first party titles beyond Breath of the Wild 2, the stock can go much higher.
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