By Ronnie Harui

Nintendo's shares rose sharply amid hopes for its upcoming Switch 2 console, the new version of its widely successful Switch console that was launched in 2017.

Various media reports suggest a new console will be unveiled imminently, with one outlet reporting that a presentation focused on the Switch 2 console is expected next week, where Nintendo is likely to reveal a pre-order date of April 2. Another media report suggests that the launch is expected in June.

A spokeswoman at Nintendo declined to comment on the report that the company will begin selling the Switch 2 console in June.

Shares were 5.0% higher at 11,300 yen, equivalent to $75.38, at the midday break Wednesday after earlier rising as much as 6.4% to 11,450 yen, their highest intraday level since Feb. 27.

In January, the Japanese company behind Super Mario and Pokemon games said it would begin selling the successor to its nearly eight-year-old console this year, although it didn't disclose the price, the launch date or specifications.

Nintendo has said it plans to share further details next month and that the Switch 2 console would come with exclusive games.

Goldman Sachs has resumed coverage of 11 stocks in Japan's games, entertainment, and Internet sector, including Nintendo's, according to a research report. Nintendo's stock has a buy rating and a target price of 13,600 yen from Goldman Sachs.

Among game platformers, in addition to Sony Group, Goldman Sachs recommends Nintendo, for which the U.S. investment bank expects a further expansion of Nintendo's active user base after the launch of the Switch 2 console.

"Based on the Switch 2 video released in January 2025, the concept and gameplay for the console appear similar to the Nintendo Switch," Goldman Sachs analysts Minami Munakata and Haruki Kubota said in the research report.

"Therefore, we believe that the unique feature of the platform--allowing family and friends to play games together in person either as a game console or as a handheld console--will make it easier for Nintendo to unlock dormant hardware and dormant users," they added.

Based on the level of "work-in-progress" on Nintendo's balance sheet, Nintendo is probably aiming for shipments of over 10 million units in the first year for the Switch 2 console, the analysts said. Goldman Sachs expects numerous new software titles to drive hardware shipments, and hence, it anticipates Nintendo's earnings will enter a renewed growth phase from next fiscal year which ends in March 2026.

Write to Ronnie Harui at ronnie.harui@wsj.com

(END) Dow Jones Newswires

March 25, 2025 23:48 ET (03:48 GMT)

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