 Hey everyone, this is nintendo ruffle jance from nintendo prime, and I don't know if you've heard but the switch is doing all right for itself in fact, there's a recent report out of bloomberg that The switch is on track to basically outsell the Wii based upon the initial stock Related exchange stuff post launch now. We're not talking about a year-over-year Comparison here because that would include things like Pokemon Go Fire Emblem heroes and all that stuff that could have greatly impacted Nintendo's overall stock price going from 2015 to 2016 So what we're talking about is actually what has happened to their stock? Sense the launch of the console compared to the previous two home console launches so the Wii The hundred million seller in its first month or so after launch the stock performance of the company was only about 8.6 to 8.9 percent higher than the standard Stock valuation at that time So that means that Nintendo stock basically rose about 9 percent Over what it was before the consoles launch in the span of a month and there's gonna be a graph up on the screen and You'll what you'll notice is that the middle line that shows a really gradual increase That is the Nintendo Wii and that just kept increasing and kept increasing over time The bottom line you'll see on that graph is the Wii U And you'll notice that the stock declined after the Wii launch and just kept going down for some time And now what's very interesting about this is what has been happening to the Nintendo switch line as in what is happening to Nintendo's stock today You'll see the stock valuation is going up at a much more rapid pace than it was with the Wii in fact as of today It's something like 20 percent higher than it was before The Nintendo launch now this isn't necessarily that the stock itself is 20 percent higher This has to do with evaluation based upon that the Japanese marketplace So there's a lot of fine-tuning data behind all of this but the point is that these are the three post launch comparisons of the valuation of Nintendo and This is important because this valuation is a direct comparison to previous console launches And it kind of shows what the market is doing in terms of predicting Nintendo success moving forward and With an outpacing the Wii at this stage It still doesn't mean much right because we had GameStop earlier You know say oh that they think it could be as popular as the Wii and I still think it's crazy for any analyst or any You know people even Nintendo themselves to ever say this thing is going to sell as much as the Wii because the Wii is their highest selling home console of all time and It's fine to have that as like an internal goal Like maybe Nintendo wants to sell 100 million units I mean, I'm sure they want to sell 150 million units and top out the DS But reality is that someone's got to keep your expectations in check now Nintendo switches off to a phenomenal start and I know a lot of this can be attributed to Zelda, right? You know Zelda is huge. Zelda is popular And you know if you can't tell I'm wearing a breath of the wild a brand new sweat jacket here It is Potentially game of the year this year and potentially one of the best all the games ever made which means that it could be Nintendo's Potentially best system seller they've ever made and it's crazy saying that because we sports right now is Nintendo's best ever system seller ever made and I don't know if Zelda could top we sports we sports sold crazy numbers, you know It was 50 60 70 million units it was something nuts because it came with the Wii so This doesn't come with the system But it seems to be that it has a really high attach rate something like 90 95 percent of people who bought a switch own breath of the wild for it but It's very interesting because there is still reason to get excited about the switch Nintendo has been heavily advertising the switch. It is all over cable TV satellite TV YouTube I can't even watch YouTube videos without seeing switch ads. I've seen ads on Pandora I've seen ads on Hulu on you know, I haven't seen them on Netflix But Netflix doesn't really do advertising like that outside of their own stuff But I have seen ads everywhere for the switch and now I'm seeing the ads ramp up You know point users Mario Kart 8 Deluxe, which is the next big game coming up Then after that the ads might start targeting arms You know, it's very interesting seeing that Nintendo has put a massive marketing budget behind the switch and it's working Right you still are not able to go to stores and find switches on store shelves despite the fact that this box right here These are heading out to stores GameStop has gotten more of these since launch Walmart has gotten more of these since launch target All of your consumer electronic places have gotten more of these in boxes for their shelves And they are selling out almost before they even arrive, right? There's many news reports. I go around the web. The news is just people say hey The switch is in stock and then it's out of stock. It's in stock. It's out of stock It never stays in stock for more than even a 12-hour period whether it's online or inside a retail store That's just crazy to me. How quickly this system is still selling out and from what we know Or what we can assume Nintendo ramped up production, right? That's what they said that they've increased their production They were prepared to increase production in case demand hit a high that they weren't sure it was going to hit Then you know, they didn't want to pull a spirit tracks, right? For those who don't know spirit tracks was overmade Especially in Japan they predicted it would sell extremely well in Japan just like Phantom Hourglass said it didn't and it ended up In disco bins like two weeks later for like 20 bucks. So they you know, they didn't want to do that with the switch They didn't want to overproduce the switch at launch have 7 million available But only able to sell 2 million and then they have all these units just sitting there that aren't selling that Nintendo's losing money on So this is you know for those who don't know business 101. This is why you have shortages It's better to have shortages than it is to have overproduction So for what we know they are producing the system faster than they were able to produce the Wii back in 2006 and it's still selling out so it's weird to me because this Bloomberg article ends with a sales projections and I'll throw an image of that up where the projections come from all these various, you know, anal analytical groups and Some are saying it's going to sell 5 million and if I the end of fiscal year March 2018 some are saying it's going to sell 8 million or 10 million or 14 million and It's really weird seeing the large variation in these numbers because we don't we don't have anything exact from Nintendo We're not we are going to have pretty exact figures if not to a tee as of like April 28th or April 24th or whatever they do their their final fiscal meeting of the year before everything wraps up and It's very interesting that a lot of people out there think the switch has already sold 2.5 to 3 million units just last month and Yet there's an analyst out there projecting it's only gonna sell 5 million that means it's only gonna sell 2 million the rest of the year I Doubt that I mean I could see that if these things were starting to hit store shelves now and not selling anymore Like if I watch in the GameStop and I saw oh they have 20 Nintendo switches in stock and they just aren't moving units Okay, then sales have really slowed down, but right now sales are not slowing down for this thing It is hard to get a hold of one And you know, that's okay. That's that's expected. That's why pre-ordering still matters today in 2017 for hardware I don't think pre-ordering software beyond limited editions really matters but for hardware it doesn't matter if you want to play that system within the launch window as Nintendo likes to call it and Obviously, you know when you get hardware within the launch window there might be issues And we've covered some of those issues, you know You can watch some of my prior videos on the left joy kind issue that Nintendo has already talked about and you know Nintendo switch bend gate as we called it and I Am perfectly happy with my Nintendo switch and I am very happy for Nintendo And I really hope that this is the home run that they've been waiting for That we've been waiting for as gamers because I think the Wii and how successful it was You'll still find a lot of lapsed Nintendo fans or a lot of Hardcore Nintendo fans that were not happy with the Wii era. They didn't like the motion controls It's ironic because the switch has motion controls, but the switch feels like a system built for adult gamers and That's something that we didn't feel like it was built for it was built for families It was built for everyone gathering in a living room and this thing's built to to adapt, right? This is an adaptive system here. It is in tabletop mode. It is built to adapt It is built to be used anyway the consumer wants you want to have your Wii sports games You could do that with the motion controls. You have instant multiplayer, right to controllers I know people want to talk about comfortable uncomfortable. It's usable. It's usable like this, you know And this is just tabletop modes. This is just me plopping it down on the table. I mean like yeah, let's go I can get up keep the kickstand here. I am playing it portable on the bus on the train on an airplane You know, I plop this in the dock and I'm playing it on my TV. It's the system is the master of convenience and it's being convenient in a way that adults need it to be convenient, right and That's what's so great about this is to make a person to the Wii which the Wii was built to expand the gaming audience to audience To you know to people who just don't play games Whereas this isn't meant necessarily to expand the audience more so to cater to an Audience that has a harder and harder time finding ways to play video games in their ever-increasing busy life Yet still being able to satisfy those that do have the time to sit down on their couch on their big screen TV and enjoy video games And do so in a way that doesn't necessarily feel like it's compromising, right? No, this is not an Xbox Scorpio pushing six teraflops with you know an 1100 You know whatever megahertz thing of 40 compute units and all this crazy stuff We just learned about the Scorpio. No, that's not a Nintendo switch But if breath of the wild is any indication which by the way breath of the wild was developed for Wii U This system is more than capable of handling a triple-a gaming experience And I'm really looking forward to seeing what third parties do with this when Nintendo continues to do with it moving forward this is the handle Ruffle Jants from Nintendo Prime and The switch man, it's doing well Japanese markets are excited gamers are excited. I Think I think it's safe to say Nintendo. They did it I'll look forward to playing against all you guys and Mario Kart 8 deluxe at the end of the month I'm signing out Happily like the good news Nintendo's not doomed