by: Hannah Genig, Benzinga Staff Writer
As of Tuesday, Nintendo reported selling nearly 20 million Nintendo Switch consoles. This news is backed by anticipation surrounding the release of "Super Smash Bros. Ultimate" and two "Pokémon: Let’s Go" games later this year.
“Sales of downloadable versions of packaged software and add-on content for Nintendo Switch showed especially good growth, bringing digital sales to 18.5 billion yen (68-percent increase on a year-on-year basis)," Nintento said in a press release.
Total sales reached 168.1 billion yen. International sales accounted for 128.7 billion yen, or 76.6 percent of total sales, while Nintendo's operating profit reached 30.5 billion yen.
“For Nintendo Switch, hardware sales in every region have been trending upwards since the video game expo, E3, was held in the U.S. in June. In parallel with an increase in digital sales, software sales also have been moving in good shape towards the holiday season,” the company said.
Nintendo announced plans to launch Nintendo Switch Online in September, expanding the involvement and functionality of the console to promote further product growth.
Why It’s Important
It was reported Monday Gabriel Plotkin, head of hedge fund Melvin Capital Management, had compiled a $400-million short bet against Nintendo. Plotkin has yet to reveal his reasoning.
According to Bloomberg, this bet is the largest trade against the company since at least 2013.
Nintendo could demonstrate strong growth in the next year driven by product advancements and the launch of new games. However, the news of the recent short bet will likely induce skepticism and concern on the part of investors.
Nintendo's OTC shares traded up 3.5 percent Tuesday to close at $42.67.
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