Nintendo stock just ended trading +5.48% after the Monster Hunter announcement.

[bdbdbd]

RolStoppable said:

Pinkie_pie said:

So you're saying switch wasnt guaranteed of a monster hunter game and this announcement was unexpected and thats why nintendo stock went up? 

Yup, because analysts have no clue.

But Nintendo's stock has been climbing up steadily for three months now, so Monster Hunter isn't the sole contributor to this rise.

That's a yes and a no for both. As Monster Hunter is considered a major franchise, putting it on Switch (instead of 3DS or PS4 for example) is an indication that Capcom is confident in Nintendo's future. Of course, I don't think future announcement will have similar effects.

On the other side, we woudn't be seeing such a rise in value if analysts had confidence in Switch earlier this year.

Problem is that (just like it was with the Wii) the analysts can only see Switch mining into 3DS market (like they thought Wii would mine the DS market), which isn't the case, as as a handheld, Switch is placing itself into the high end - price and otherwise - whereas 3DS is on the low end; you get two to three 3DS family devices for the price of one Switch. Currently it's virtually impossible for anyone to enter the handheld market as Nintendo has bases loaded over the spectrum. Switch will replace 3DS eventually, but that's after Switch has it's successor and is moved into downmarket as a handheld-only device. Now that Vita is dead, Nintendo is securing it's position with N2DS, and using it's core (handheld) market as a staple to cram back it's relevance in the home console market (provided a one-dimensional view).