 So moving on to our next topic well This is some good news For once Nintendo switch is doing very very well So well in fact that Nintendo themselves their stock valuation has Surpassed the peak it hit with Pokemon goal last year and to put that in perspective When Nintendo had this massive spike last year all the investors were under the impression that Nintendo makes most of the money from Pokemon That's not the case. I ante makes the most. Yeah, then the Pokemon company then game freak and then Nintendo Like there's a lot of IP stuff going around there. So Nintendo actually makes the smallest cut, but Nintendo does make some and The peak they are at now with their valuation, which is like 31,880 yen Per share is all barely higher than at the peak last year of 31,770 but it is higher and There wasn't anything that necessarily happened to make a spike like there wasn't some You know, Mario Kart 8 deluxe didn't light the world on fire Nintendo switch we're we're we're on you know two months out three months off from that releasing So there's nothing that really happened with that to make it suddenly spike I mean you can see a spiking at launch, but we're past that so The the theory is is that if you look at the scale and I'll put up put some images up in the video version It's consistently on the rise for like the past few months and what that means is investors have confidence in Nintendo Because the switch is continuing to sell out the games that they release in the platform are continuing to sell well the They are mobile games fire on them heroes Super Mario run even though Super Mario run is not performing as well as investors wanted to It's still making money So Super Mario run fire on them heroes Pokemon Go They have animal crossing coming out that they have other mobile games on the way this when they dedicated them releasing three per year They're all making money. So Nintendo is making extra revenue They're committed to mobile and now they have a platform that everyone's excited about an MLB teams are playing out in the clubhouse Oh, yeah, like I think investors are seeing that Nintendo is a very very healthy place to be right now In fact so healthy that at the time of that report They were the 19th most valuable company in Japan now I don't know what companies are ahead of them. I didn't look at the list So know how impressive that is but to be still the top 20 the top 20 in a country full of tech companies Is awesome. Oh, yeah for sure On top of that, it's not that Nintendo is just doing well for itself apparently Best Buy and Target are Doing awesome because of Nintendo they specifically came out and noted that Nintendo is a reason for a turnaround with their company at Best Buy they were projected to lose some more market share in the consumer electronic space and to have you know break-even profits or whatever and Ever since the switch came out there was a store to something value or whatever went up 1.6% when it was supposed to go down 5% So they actually increased their value and their net profits were higher than they've ever been Primarily because of Nintendo switch and when I say higher never been like highest in nine months. Yeah And then target which is really interesting Month to month and quarter to quarter they have consistently seen their electronics Area decrease in the money it makes and decrease, you know and and how much profits it makes not saying that it makes losses But it's been decreasing in value for the company usually when that happens and it's been happening for two years You start thinking maybe we should start coming back on electronics Not not maybe you can get rid of the electronic section of you know, that's what happens You know if Walmart wasn't making money in the electronic section. They will get rid of it Yeah, you don't keep around things that lose money but For the first time in two years they saw growth Yeah, that's crazy So Nintendo switch comes out Boop April hits Target targets electronic section starts to soar and what was target doing in that time? Oh nothing other than massive advertising for Mario Kart 8 part. Oh, yeah Yeah, for sure. So that definitely paid off for them. So it's like Nintendo switches, you know, there's this theory out there A prevailing theory because people still believe that this is what Nintendo did with the we and the DS More so with the we and that's what they believe they do with amiibo too And with amiibo, there might be a bigger that might be a bigger conversation than what I'm going to talk about here But there's this theory with fans that Nintendo purposely does not make enough systems to create artificial demand right and that the system isn't like Really if they met demand and released enough systems for it the sales Wouldn't be that much better than they already are Okay, so basically they could have 8 million switches on the world right now But it wouldn't sell out of those 8 million like the sell out the sellouts are just are just a fake hype driven thing There isn't actually that many people that want the system basically Or you'd have a massive spike and then a huge drop off. Yeah, I mean that's other the other way So basically Nintendo's under producing what they can produce is essentially the theory So they can maintain that oh we keep selling out mantra when they're really only shipping out three consoles per batch And you know, of course, you're selling out because you're only you're not selling out 20 per batch like you should right I mean you gotta give it to him that that's not In a way, it's not a terrible business decision If that's what's happening, right, right, but I feel like it's also making people mad that they can't get all the one Any yes classic anyone right However, I feel like this impact on Best Buy and Target in April Almost proves the exact opposite Now with the we it was easy to argue that Nintendo had a problem with production Because think about it the Gamecube sold 22 million You think they were honestly prepared for 100 million unit seller at launch There's no way in hell they were prepared by the time they caught up was 2008 a year and a half later And what happened in 2008 they sold more we units than they've ever sold It was the peak year of the we because they finally caught up to consumer demand and it kept selling at insane levels It took nintendo that long to catch up at manufacturing and it's easy to believe because they have never not even the NES was that popular Right, they have never seen the system Go that high the almost popular handheld. I think at that time was Gameboy They only sold 80 millions like they had never seen anything like this right and at the same time the DS was blowing up So like they literally it's very understandable that those shortages were not like artificial They no way in hell could anticipate that kind of popularity um and With the switch I know it's easy to say because they went through this before that they anticipated it and that nintendo You know, they mentioned that you know, they're gonna, they had the ability to ramp up production if they needed to just in case um The thing is I think they did ramp up production I just didn't keep selling out because why how could best buy and target entire electronics business Improve that drastically in a single month if they weren't getting units to sell Yeah, there's that That's the thing if there isn't nintendo switches to sell it can't impact the store. Well, either that or They were really doing bad Well, if that's why I was doing that bad, they wouldn't even get around. Yeah, that's for sure That turn around a two-year trend, right? Right? Oh my god. If they only got 10 switch units at every store That's not turning around. No, definitely It's not like that. That's $3,000 from the switch for a store. Yeah, that's the other option Is that they were really doing bad? So this to me Tells you tells at least me that no nintendo's sending out a ton of units They're just selling out and I have one caveat to prove this They I was just curious. So it was I think it was two fridays ago Best buy my local best buy sent on an email saying hey, we're gonna have new nintendo switch units in on friday When I went out there at opening just to see there were some people waiting in live for it I'm like, I'm not here to buy it. I'm just curious like I just went on the units I got yeah, because I try to ask them on the phone and they said we can't tell you I'm like, okay I don't know why you can't tell me right? I just want to know if I was a potential customer I wanted to say worth me standing in line for when you only have three systems or do you have 50 and you know There's only 10 people standing in line. Yeah, but yes well When I went in they had a pallet at the front of the store because I this I think they just expected to run out of it right away And there was 35 I counted 35 switch units on it nice And by the time I left the store because you know, I want the best buy I'm gonna walk around Oh, yeah, I'm gonna I'm gonna play on that ps4 pro that got back there. You know just set up I'm gonna sit and listen to some music. I'm gonna browse and see how much they're overcharging for computers So I came back and when I left the pallet was empty How long I was in there for an hour and a half That's impressive So now that's just my local that doesn't mean that happened at everyone But what I'm saying is it's very clear to me now that we have these these these factual numbers come out that Nintendo's giving tons of switches and they're just not like They can't anticipate that it was going to be this big this this quickly Uh, especially since you know, what's the two primary reasons to own it? Breath of the Wild and Mario Kart 8 to Wii U games. You think they really thought Right a couple ports. We're we're gonna blow up the system like that I don't think that any idea that was gonna happen definitely outside of the launch month Since that was the first time Breath of the Wild came out now I I just think any argument The thing is we don't know we will find out at the end of june That's when they have their next financial meeting and they'll update the sales figures for a switch And I think we might see switches over 5 million It was at 2.74 Just in march just for launch So if it was at 2.74 there, how much would it have to sell to be over five? Just you know 2.5 million units since then over the course of what? April may and parts of june The 2.3 Yeah, just to be above five. I'm pretty sure That when we hear that number like I'm saying above five. I wouldn't be shocked if they're like, dude We sold 7 million. Yeah, it wouldn't even surprise me And then it's like, okay, how much at what point at what point were the people that say that Realize that's a ton of freaking units and a span of four months Yeah, I was gonna say Like not even playstation 4 was selling at that pace and that was the fastest selling console of all time for the first year Well, I mean Just think about this if that keeps the pace Let's just say at that june. You're at 7 million That keeps the pace. That's 21 million Units in a year and they're only projecting to sell like 10 in this fiscal year. Yeah so Now and here's the thing if it's at that this is all just you know, we don't know Even if it's at five It's still one of those things like it's at five, but it's selling out, right if they can maintain that momentum That's all they have to do that They just need to maintain the momentum till the holidays and I might say oh my god momentum should die that No, because you know mario's coming You know you have that next breath of the wild massive hit on your hands. Hopefully potentially we assume it's good Right So they know they have like that ace in the whole game that they just need to keep people buying out the system until then When the next massive massive game hits And then it's going to be a best seller for the holiday period. Yep I mean this assumes they can stockpile for the holiday if they keep selling out They probably can't stockpile, but they're gonna try like if they keep selling out all summer And they realize crap. We're getting the holiday season and we're not gonna have more than 10 units on the shelf on black friday Let me tell you They thought they ramped up production. They might buy more factories. Oh, yeah Because they're gonna be like no we need, you know, we're gonna need five six million out in the wild for just the holiday period Right. Um, so it's one of those things that I think nintendo nintendo is obviously doing well Here's two retailers that are doing well because of nintendo And I think Right now at least until we get concrete figures. I think it's easy to argue in the moment That nintendo is not purposely shorting nintendo switches We'll find out for sure. That's handed you. Yeah Um, what number would do you want to hear that would make you feel like they're not shorting? Okay, how much would it have to sell? Yeah, I honestly don't even know. I well, so 2.74, you know in a month So so how much would it have to sell for you to feel like? You know what we have to remember is that 2.74 included the fact that nintendo flew units over So they're not doing that anymore. It's all all boats because that's really expensive to do right They just wanted to make sure they had enough units for lunch. So Uh, I would say somewhere between the five and seven million what we've been talking about Because I think the only way I'd be disappointing and the way I would agree with fans is if they come out and they're like Look, we only sold we sold 3.5 to 4 and I'm like how we've already seen some sales totals for April and you're telling me a tank that bad in me. Yeah, right and you still couldn't get units on the shelf Unless you come out and say one of your manufacturing buildings lit on fire and burned down And you lost how many yeah the units or a warehouse or a warehouse in the us got burned down or something Unless there's a literal reason that it was out of your control Right. Um, anyways, just a little fun bet nintendo's just making more money now or per share Their shares are worth more money now than they were when pokemon go released. So that's just kind of a cool thing