Nintendo Sells Record 735,000 Switch Consoles In October

Nintendo Co Ltd (OTC: NTDOY) sold more than 735,000 units of Switch and Switch lite consoles collectively in the U.S in October.

It was the second-highest October month of any video game console sales after the 807,000 unit sales of Wii System in 2008, Engadget reported.

According to NPD's report, Nintendo Switch's total unit sales in the U.S. since inception are around 22.5 million.

What Happened: Switch continues to hold the top spot as the best selling video-game console for almost two years in a row.

Nintendo plans to launch a bundled package in the third week of November. In addition to the Switch system, the package will also include Mario Kart 8 Deluxe download code couple with a 3-month individual subscription for Switch Online for $300.

Nintendo America's President, Doug Bowser's believes that the sales trend could continue during the holiday season as well, Engadget reports. 

Why Does It Matter: During the earnings call last week, the company management revised Switch's 2021 sales forecast to 24 million units, 26% higher than previous forecasts.

Market peer in the gaming segment, Sony Corporation (NYSE: SNE), launched the PlayStation 5 on Nov 10 and claimed to target a sales figure of 100 million units.

On the other hand, Microsoft Corporation's (NASDAQ: MSFT) Xbox Series X was launched on Nov 12. The trillion-dollar tech company follows a different strategy, engaging gamers to spend more time on their platform.

Analysts have predicted shortages for both the PS5 and Xbox consoles running into 2021, exacerbated by demand arising from stay-at-home gamers.

Price Action: NTDOY ADRs closed 1.66% higher at $64.34 on Thursday.