Nintendo’s latest gaming handheld ‘Nintendo Switch’ is a financial success. It was praised by NVIDIA on their latest quarterly financial meeting recently.
Nintendo Switch has sold 4.7 million units in less than six months. It sold 1.97 million units in Quarter 2 of 2017. With 1.2 billion USD in earnings, this is Nintendo’s most profitable business product since first quarter 2011.
NVIDIA recently praised Nintendo, in their investor’s meeting. NVIDIA’s CEO Jen-Hsun Huang said that NVIDIA’s gaming portfolio is doing incredibly well in terms of earnings and one of the major reason is Nintendo Switch handheld.
It is powered by NVIDIA’s custom Tegra GPU that is scalable, fully supports custom software, built specifically to bring lightweight, fast gaming to the masses. Supports hardware-accelerated video playback and includes OS integration with the GPU to enhance performance efficiently.
NVIDIA’s CEO praised Nintendo for their innovative gaming ideas and original thinking. He also added that it makes him so happy to see that Nintendo takes risks, they’re the innovators. They don’t get influenced by what competitors are doing and they’re very original in their approach. The way they introduced the new product to the gaming market was commendable and NVIDIA as a whole is really happy that their console is doing so well.
The way they introduced the new product to the gaming market was commendable and NVIDIA as a whole is really happy that their handheld is doing so well.
NVIDIA announced its earnings in an investor meeting a few weeks ago where the major chunk of income was coming from the gaming portfolio and within that portfolio Nintendo Switch has a major contribution to the profits.
NVIDIA’s Year on Year basis Net Income has increased by 120% while operating expenses grew about 21%. Having a price to earnings ratio of 13x NVIDIA declared an EPS of $1.
NVIDIA announced its partnership with Nintendo last year’s quarter 4 and the console was launched in March 2017. Major selling games are Zelda Breath of the Wild, Mario Kart 8 and ARMS.