2017 has been a pretty good year for Nintendo. After going through some hard times early on with the 3DS, and basically throughout most of the Wii U’s lifetime, the Big N has finally reached a state of true progress with the Switch.
The hybrid system is a little over six months old at this point, and yet it has proven to be a massive hit worldwide. It’s spent the better part of this year being a bit of a rarity on store shelves due to the unexpectedly high level of popularity that it has amassed with both the gamer and non-gamer crowds. The Switch’s success has propelled Nintendo to quite a financial height, as revealed by a recent Tweet from Dr. Serkan Tokyo, the CEO of a game industry consultancy in Japan. What did he have to say? Basically, Nintendo’s market capitalization is now nearly 10 billion dollars higher than that of Sony. All of Sony.
Current market capitalization of Sony: US$46.3 billion. Nintendo: US$54.6 billion.
— Dr. Serkan Toto (@serkantoto) October 10, 2017
Taking into consideration that Sony is much larger company than Nintendo, it’s a very interesting situation. On one hand, Sony has far more assets than Nintendo, but Nintendo technically has its own advantage with having less to manage. PlayStation is a division of Sony, and is currently the best-performing division of the company. With that being the case, Sony as a whole isn’t having the best business since it’s had to restructure a lot of its other divisions over the last few years due to financial loss.
With Nintendo being a game company first-and-foremost, that’s made it easier for profits to be generated since there’s hardly anything else to take away from that. Basically, Nintendo performing well or not is heavily reliant on the state of its gaming products. With the 3DS and Switch both being healthy platforms, it’s no wonder why the Big N has been able to achieve this financial milestone. It will be interesting to see how things continue to progress as the generation continues and the Switch advances.