Nintendo $7974 (+0,21%) has made it into my portfolio for several reasons. For decades, the company has been able to appeal to new generations of young gamers and at the same time build up an exceptionally high level of brand loyalty. The Switch console is currently still very popular and shows that Nintendo can be successful even without high-end hardware. A major advantage over competitors such as Xbox or PlayStation is that Nintendo is more profitable both in the console itself and in the accessories business.
Its own brands such as Mario, Pokémon and Zelda, which are known worldwide and regularly achieve high sales figures, are also particularly strong. In addition, Nintendo benefits from every game sale on the Switch platform, including third-party titles, which further strengthens the business model. This is complemented by growing online services with recurring revenues. In my view, the recent price setback offered an attractive entry point.
