Earlier this month, news that Tencent (TCEHY) has received approval from the authorities in Guangdong province in mainland China to handle the sales of Nintendo’s (NTDOY) Switch was posted online. This news had an immediate upside impact on Nintendo’s share price as it rose 15% to its highest level YTD as investors factored in the upside potential of the increased sales of Switch.
Although the timing of the deal finalization remains unclear, the potential boost in Switch’s sales should positively impact Nintendo’s financials with Switch’s sales contribution expected to peak in