logo
Expert asserts Mario Kart World is a 'fake HDR' Nintendo Switch 2 title — ‘Mario Kart World reveals that even the highest caliber of developers aren't taking HDR seriously'

Expert asserts Mario Kart World is a 'fake HDR' Nintendo Switch 2 title — ‘Mario Kart World reveals that even the highest caliber of developers aren't taking HDR seriously'

Yahooa day ago

When you buy through links on our articles, Future and its syndication partners may earn a commission.
Mario Kart World on the Switch 2 is guilty of implementing 'fake HDR,' according to recent heated reactions by a number of TechTubers. We are well aware of social media rage farming, but a coolly considered, in-depth new technical blog by Alexander Mejia, agrees that Mario Kart World was developed using 'an SDR-first content pipeline with a last-minute HDR tonemap that limits the color and dynamic range.' Mejia is probably one of the leading authorities on creating HDR visual experiences, based on his experience in delivering 'the world-leading Dolby Vision HDR experience to Xbox Series X and Unreal Engine.'
In fairness, the developers of Mario Kart World have set themselves up for this stinging criticism, as the flagship launch title is marketed with boasts of it supporting 4K resolution at 60FPS refresh with HDR visuals (4K60 HDR for short). However, 'Mario Kart World reveals that even the highest caliber of developers aren't taking HDR seriously,' reckons Mejia.
That tripping up over HDR isn't uncommon, though. Rather, Mejia admits that 'If you're finding it tricky to make your game's HDR look right, you're not alone.' The most important thing to do, to make the most of the HDR capabilities present in most TVs and monitors sold in the 2020s, is 'embracing HDR from day one, not as an afterthought,' suggests the HDR pipeline consulting expert.
Image 1 of 2
Image 2 of 2
If you are curious about how Mejia captured, reviewed, and assessed the Mario Kart World on Switch 2, he shares the full details of his hardware and capture path, the procedure, and tips for home users wishing to achieve similar insight.
Moving on to the findings, the HDR expert's images, charts, and stats make the HDR quality deficiencies in Mario Kart World glaringly obvious. A particularly stark result comes from image brightness peak measurement. 'Nintendo's own test image peaks at only ~500 nits even if you set 10,000 nits peak brightness,' noted Mejia. 'Not a good sign that they took HDR seriously.'
Also, it was observed that, even if the console brightness is cranked to 10,000 nits, 'captured peaks in game never exceed ~950 nits.' That's quite a discrepancy. It is also quite a shame, given the game art's colorful and bright style being chained to an SDR-like color space (likely Rec.709), making no use of the extended color gamut afforded by the Rec.2020 standard.
Above: Both Godfall Ultimate Edition on XBOX Series X (left), and Mario Kart World on Nintendo Switch 2 (right) are captured in HDR, with 10,000 nits max brightness.
To conclude, Mejia repeats the sentiment from some of the tastiest quotes we have included above. In short, it looks like even the best developers are not taking HDR seriously, seem to follow an SDR-first workflow, and are thus squandering the possibilities of modern consoles and TVs (or monitors).
The HDR expert finishes up by cannily touting his studio consultancy, offering help with 'HDR first rendering pipelines, Dolby Vision integration, and dynamic tone-mapping strategies.' Keep that in mind as you ponder his findings.
Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Nintendo Switch 2 Review: The Ultimate Handheld and It's Not Even Close
Nintendo Switch 2 Review: The Ultimate Handheld and It's Not Even Close

Gizmodo

timean hour ago

  • Gizmodo

Nintendo Switch 2 Review: The Ultimate Handheld and It's Not Even Close

The Switch 2 "1-Ups" the groundbreaking original in every single way. 2025 After the massive flop that was the Wii U, consumers had every reason to believe the original Switch, released in 2017, would be yet another Nintendo gimmick that would push people to buy a PlayStation or Xbox instead. But the original $300 Switch's handheld/console design, with its detachable Joy-Con controllers, proved to be a major hit with gamers of all ages. The handheld and TV-dockable game system was inventive and could be understood immediately. It felt like another Wii moment for Nintendo, only this time the Switch was the game console's final form. How could the company that gave us Mario, Pokémon, and Zelda possibly top that? See Nintendo Switch 2 at Walmart See Switch 2+ Mario Kart World Bundle at Walmart Apparently, with a $450 Switch 2 that has just enough new hardware upgrades and nothing too wacky. You get more performance, a bigger and sharper screen, Joy-Con 2 controllers that now magnetically attach and support mouse controls for exciting possibilities in shooters and real-time strategy games, and GameChat video and voice communications. The Switch 2 hardware is iterative—a specs bump—but it'll also be the exclusive platform for Nintendo's biggest and most recognizable gaming franchises. If you want to play Nintendo's latest and greatest titles, like the now-available Mario Kart World or the upcoming Donkey Kong Bananza, the Switch 2 is the only option, even if you have a PS5 or Xbox Series S/X. In the same breath, Nintendo has also crafted a console that's more restrictive than any other similar device in recent memory. Only Nintendo could make game ownership so onerous when the hardware is this good and the top-quality games aren't available anywhere else. It's extremely frustrating that sharing games or managing game saves is so needlessly cumbersome on the Switch 2, and it's outright maddening that a company that's perfected making complex hardware easy to use—with arguably the best music and sound design—is also so reluctant to embrace how basic gaming features work on other, more open, game platforms. Nintendo Switch 2 The Switch 2 has just enough new things to keep it interesting, but most importantly it lets you play original Switch and modern games with higher fidelity. Pros Lightweight feel with solid controls Lightweight feel with solid controls Great display with HDR support Great display with HDR support Mouse controls offer new gaming possibilities Mouse controls offer new gaming possibilities Powerful enough for games like Cyberpunk 2077 Powerful enough for games like Two USB-C ports Two USB-C ports Access to GameCube games Cons LCD, not OLED screen LCD, not OLED screen 256GB of storage is low for 2025 256GB of storage is low for 2025 Subpar GameChat video and audio quality Subpar GameChat video and audio quality Way too much DRM The Switch 2 is the communal console for our current gaming era. There is no better system around for couch multiplayer—especially one you can easily pack up and take with you. The Switch 2 is its own beast, and it takes the 8-year-old design of the original Switch and allows it to compete—and beat—the growing number of handheld platforms available today. With more horsepower for high-fidelity games like Cyberpunk 2077 and a slate of already-announced Nintendo-only games coming this year and next, we have very little fear that there will be a dearth of compelling titles for the Switch 2. Nintendo's new game console is no Sony PS5/PS5 Pro or Microsoft Xbox Series S/X, but at least it now has the performance to last well into the future. The Switch 2 Looks Better and Plays Better Actually getting into Switch 2 games is more enjoyable than maneuvering around Nintendo's fascination with digital rights management, or DRM. Playing both new and old games on Switch 2 is a superior experience in every way. The 7.9-inch IPS LCD display is about 30% brighter than the original Switch's 6.2-inch screen, and it has wider dynamic range and higher contrast, which helps make games pop more. The screen also supports high dynamic range, or HDR (although the specifics are a bit more complicated), and can refresh games at up to 120Hz thanks to its variable refresh rate technology (VRR), which automatically adjusts the refresh rate based on individual content. However, VRR is inexplicably tied to handheld mode, and it isn't available when docked and connected to a TV or monitor. We could play a variety of games in handheld mode and not feel like we were missing much, other than support for 4K. When the Switch 2 is hooked up to a TV via its dock, the device becomes a quiet powerhouse (the new inclusion of a fan in the dock for cooling definitely helps), at least for those games designed for its unique hardware. You can huddle next to the Switch 2 in handheld mode and not hear a mouse burp from the fans compared to the miniature jet engine you can occasionally hear blasting from a PlayStation 5. With the original Switch, Nintendo proved that stylized, artistic-minded in-game visuals were the remedy to the graphics realism of other consoles and PC gaming. Simply put, its performance was underpowered even compared to a PS4 or Xbox One, both of which came out four years earlier in 2013. Its custom Nvidia chipset was, at times, overburdened by The Legend of Zelda: Breath of the Wild at launch. And when pitted against the current-gen PS5 and Xbox Series S/X, the original Switch was lapped hard. It's been eight years since the revolutionary Switch, so an upgrade was overdue. Performance matters so long as it makes games enjoyable. The Legend of Zelda: Tears of the Kingdom running on the OG Switch at all was a minor miracle, but rampant frame rate dips inevitably made the experience worse. We've played the game on both the original Switch and Switch 2 with the $10 enhanced edition upgrade, and there's no question Zelda on the new handheld—even when bushes and other foliage tend to 'pop in' or render only when you get close—is the better way to play the game. There's no way we can go back. Even games without a 4K upgrade, like Super Mario Odyssey, were a more enjoyable experience on Switch 2 at 1080p than the original at 720p. Would we buy a Switch 2 just to play original Switch games without upgrade packs? No, but we also know we have little reason to return to the 8-year-old handheld. One hardware spec that we were hoping for was an OLED screen. For the uninitiated, OLED (organic light-emitting diode) is a type of display technology that is desired for its true deep blacks. Unlike LCD screens that use a panel of backlights to illuminate pixels, OLED displays turn the individual pixels themselves on or off, allowing not only blacks that are pure black because they can be left off, but also the added bonus of power efficiency. Despite lingering love for the Switch OLED from 2021, it seems like Nintendo is saving the display tech for an inevitable mid-cycle refresh when sales for the Switch 2 start to slump. That will also likely make a $450 device even more expensive since Nintendo rarely drops the price of its systems. Case in point: Nintendo's still selling the original Switch for $300, the same price it cost at launch. It's better to have a Switch 2 available to start with rather than waiting to spend potentially $500 or $550 for a prettier screen. The Switch 2's LCD display, with its support for HDR, is more than sufficiently vibrant that we weren't eyeing our Steam Deck OLED with any subtle or not-so-subtle envy. All this makes it seem like we're settling. Instead, all you have to do is compare the Switch 2's display to devices of this size and price. Even if the screen is LCD, the Switch 2 has a larger, brighter, and better-looking display than many other LCD-based handhelds that cost more. Yes, once you go OLED, it's hard to go back, but when you're in the thick of a game, whether or not blacks are dark grays isn't going to be what breaks any suspension of disbelief. Oh, and don't peel off the screen's protective plastic layer or you might just shatter the whole thing. There are other delightful and easily overlooked improvements that Nintendo made to the Switch 2. The aforementioned Joy-Con 2 controllers connect with a satisfying click to the console using magnets instead of the sliding rail mechanism on the original Switch. Now, you just press the Joy-Con 2 release buttons located right below the ZL/ZR triggers, and they pull apart. Be careful, though, because accidentally pressing the release buttons when grabbing the Switch 2 from either side could mean dropping it. On several occasions, we caught our Switch 2 just in time before it took a hit to the ground. And speaking of the new magnetic attachment system—the SL and SR buttons tucked inside of each Joy-Con 2 are now larger, clickier, and made of metal. Additionally, while the U-shaped kickstand on the Switch 2 doesn't span the entire length of the backside like it does on the Switch OLED, it's at least not the flimsy gumstick-sized one on the original Switch. We're also glad to see the 3.5mm headphone jack didn't get removed, and it's nice to have a second USB-C port on the top of the device for charging or connecting accessories, along with the one located on the bottom. The built-in speakers are also audibly louder and fuller, producing clearer sound at higher volume levels compared to the crackling tinniness you got on the original Switch. See Nintendo Switch 2 at Walmart See Switch 2+ Mario Kart World Bundle at Walmart The Switch 2 feels good in hand, even if it's thinner than most other handhelds sold today. It's light, and we didn't have a problem sitting up with the device on a couch or bed for hours at a time. How many hours will depend on what game you're playing. For 2D games like the award-winning Hades, it'll last for a little more than four hours. For original Switch games like Super Mario Odyssey, we found the Switch 2 could go just over three hours before needing a recharge. Playing a graphics-intensive game like Cyberpunk 2077, we ran out of juice at exactly two hours. The Steam Deck OLED will do slightly better on battery life overall, but you'd have to look at $800 handhelds like the Asus ROG Ally X with its bigger battery capacity for anything better. Future versions of the Switch 2 may improve on battery life, but Nintendo would likely charge more for that, like they did with the Switch OLED. You can improve battery life by limiting refresh rate and HDR, but let's be honest, most of us would prefer a higher-quality experience over playing for longer. If you're noticing really poor battery life and think something might be up, you may need to put the Switch 2 into 'recovery mode,' which should reset the battery indicator so that it's actually accurate. About the only thing that gives us pause is the joysticks. The Switch 2 was notorious for Joy-Con drift, a hardware issue that caused the joysticks to register movement even if you weren't touching them. Nintendo originally didn't acknowledge Joy-Con drift, but later began repairing them for free after widespread outcry. Considering we've only had the Switch 2 for two weeks, we can't say if drifting joysticks will be a problem for the Joy-Con 2 controllers. Nintendo could have used Hall effect joysticks to guarantee Joy-Con drift wouldn't return, but the company didn't. Instead, Nate Bihldorff, Nintendo's Senior Vice President of Product Development & Publishing, said the Joy-Con 2 were 'designed from the ground up.' Although we didn't experience any Joy-Con 2 drift, there are a relatively small (but increasing) number of reports claiming the joysticks still drift. The gadget teardown and repair experts at iFixit and CT scanning company Lumafield both independently suggest the joysticks, while improved, could still suffer the same issue with enough wear and tear over time; also, the magnetic attachment system may be the reason why Nintendo couldn't use Hall effect sticks. At the very least, Nintendo will repair any Joy-Con 2 controllers exhibiting the input problem for free. Cyberpunk 2077 Sets a New High Bar for Handhelds The biggest surprise to us was how well Cyberpunk 2077 plays on the handheld. We picked up a physical game card version, which meant the download took less than three minutes before we were in the game, though the load times are slightly slower than if you're booting it directly from the Switch 2's 256GB of internal storage or from a microSD Express memory card sold separately. (Note: microSD Express cards are not the same as regular microSD cards, so you will have to buy Express-speed ones.) Game environments remain colorful and detailed, perhaps even better than at 720p resolution on a Steam Deck LCD. This is the benefit of when developers work hand-in-hand with the console maker to optimize the game to get the most from the hardware. The Switch 2 can also make use of Nvidia's DLSS (deep learning super sampling)—an AI-based upscaler that also helps improve frame rates for crispier graphics and smoother performance. DLSS can create some graphical glitches and odd textures, but those flaws can easily be overlooked. Cyberpunk 2077 is a showcase for more than just graphics, but also how well the console can handle various control options—especially the new mouse controls. The feature has proved divisive, though not because the mouse sensor on the Joy-Con 2 is imprecise or you need a flat surface for the best results (they work surprisingly well on most pants, but the surface area won't be as large as a table). The cursor on menus and in games is responsive and quick, plus games like Cyberpunk 2077 offer a multitude of options for deadzones and cursor speed. The bigger issue is comfort. Most people won't find their hand can fully relax on top of a rigid Joy-Con 2 without room for the rest of their fingers. (GameStop sells a 'mouse shell' grip to make the Joy-Con 2 more ergonomic, but we haven't tested it, so there are third-party 'fixes' if you look for them.) Even with a grip that better fits a hand, you may find it hard to press any buttons other than the trigger without playing finger twister on the controller. We wouldn't spend hours using only mouse controls, but already upcoming games like Metroid Prime 4: Beyond promise you'll be able to easily swap between mouse and joysticks just by placing the Joy-Con 2 on a flat surface. Quick-aiming and then going back to motion controls seems like the perfect compromise for shooters. A few of the minigames in Nintendo Switch 2 Welcome Tour—effectively a $10 interactive instruction manual for the console—explore how these controls could offer innovative games in the future (and it's why it's so ludicrous Nintendo didn't package the 'game' for free with the new console). The Switch 2's Joy-Con 2 controllers simply feel like larger versions of the original ones on the first-gen Switch. Nintendo's new console is thin and light, and if you don't like the feel of it digging into your palms, you need to consider other accessories that add more grip. The Switch 2 is a device that lends itself to handing off a controller for quick and dirty multiplayer, exemplified by Nintendo's premier first-party title, Mario Kart World, which was the perfect launch game. We've played more than a dozen hours in the game with various groups of friends—all of whom were jonesing to try the ultra-hyped handheld—and they all left with smiles on their faces. The Switch 2 is running a custom Nvidia chip, and it's ostensibly as powerful as some of Nvidia's lower-end Ampere-era GPUs from four years ago—or about equivalent in power to consoles from the PS4 era. Even if it's less impressive on paper than what you expect from today's PS5-level graphics, the more important thing is whether developers can mold their software to the hardware. For example, even Mario Kart World four-player split screen didn't show any noticeable frame rate drops, and as hard as we looked, we didn't get the sense that the graphics were dumbed down. Nintendo wanted to push the graphics capabilities for its new console, but it also offered an exclusive blast from the past for anybody willing to pay $50 annually for the Nintendo Switch Online + Expansion Pack. The Switch 2 allows you to play a select variety of GameCube games, of which there are only three available at launch—F-Zero GX, Soul Calibur II, and The Legend of Zelda: The Wind Waker. All three are fun games in their own right, though none but Wind Waker are the kind of titles you 'must play' before you kick the bucket. Nintendo also sells a $65 GameCube controller exclusively through its online store. You can't play the GameCube games or use the revitalized controller on the original Switch. Still, we wouldn't suggest you run out and grab a Switch 2 right now for such a limited selection of nostalgic titles. The Switch 2 is as powerful as it needs to be for modern games. It supports current-gen features like ray tracing, at least to some small degree, and has DLSS to help it keep up with systems that are rendering games natively. How well it will stack up with future hardware from PlayStation and Xbox is a more difficult question. Game developers will need to program with the Switch 2 in mind, especially if they try to port any ultra-demanding title like Grand Theft Auto VI in the future. See Nintendo Switch 2 at Walmart See Switch 2+ Mario Kart World Bundle at Walmart GameChat Isn't All That As good as the Switch 2 is for local co-op in regular sessions of Split Fiction or Mario Kart World, Nintendo still hasn't figured out what players want from online multiplayer. Playing games with online video and voice chat is hampered by subpar camera and mic capabilities. The Switch 2's minuscule built-in microphone is supposed to pick up your voice even when you're a good six to eight feet from the TV. In our tests with a colleague, we found that you really need to be at least four feet from the mic for it to pick up your voice. On our colleague's end, he wasn't clearly audible until he took the Switch 2 off the dock and held it in front of his face. Hori's Piranha-shaped camera has a lower 480p resolution compared to Nintendo's official $55 Switch 2 Camera, but the fact that it can clip to the Switch 2's top USB-C port without a dangling cable or stand should theoretically make microphone pickup better. Nintendo wanted GameChat to be such a defining feature on Switch 2 that it put a 'C' button on all its first-party controllers. The button allows you to quickly send or receive calls and change video settings without going to the main menu. Of course, it's not as easy as it sounds. You can only send calls to friends over Switch Online, and you need to provide a phone number when you first try the feature. We used GameChat with the Switch 2 Camera, which users are expected to plug into the console when it's docked to a TV. Despite having 1080p resolution, its video quality is washed out in light, and it grows extra pixelated in low-light environments. Over GameChat, you have the choice of sharing your full video or your cropped-out body. The background blur software built into the Switch 2 is so poor that it makes early pandemic Zoom calls look like Google Beam by comparison. There's probably a generation of younger players who will be playing separate sessions of Fortnite who want to see each other's gameplay on their screen. GameChat is functional, but that's the best word we could use for it. You Don't Really Own Your Games We hold the Switch 2 in our hands with a sense of foreboding. Because of virtual game cards, the games you own are locked to a single system at a time. You can mitigate this by going into your account settings and turning on 'Use Online License,' which lets you have games on two consoles at once. The problem is, two systems with the same account profile can't play the game at the same time. Plus, your save data will remain tied to one system at a time—as we learned the hard way, moving a game save from one Switch to another deletes it off the original one instead of copying it over like how it works on every other game system. Either way, due to the proliferation of code-in-a-box and game key cards (a cartridge that's a 'key' to downloading a game from the eShop and must be inserted in the Switch 2 to play said game), Nintendo has made owning your games far trickier. Features like GameShare are amazing for playing titles with friends who don't own them or don't even have a Switch 2, but since it only supports a mere six first-party games at launch, the feature is overshadowed by Nintendo's leering gaze that mandates you can't have your games—or even your game save data—in more than one place at a time. Games now come in four flavors: game card, game key card, code-in-a-box, and digital download. Games installed on the Switch 2's internal storage will load the fastest, but with only 256GB, it'll run out fast. You may be thinking 256GB—eight times the 32GB in the original Switch—seems like plenty, and maybe it is if you're sticking to smaller indie games, but the Switch 2 operating system eats up about 10GB and games like Cyberpunk 2077 hog up 60GB; Split Fiction uses close to 70GB. Other third-party titles like Street Fighter 6 and Yakuza 0 will take up almost 48GB and 54GB, respectively. A microSD Express card, especially if you're planning to install Switch games and Switch 2 titles, helps alleviate these issues at a cost (we paid $60 for 256GB Samsung one), but the lingering problems with virtual game cards mean it's that much harder to own your games and easily swap them between friends. You can't simply offer your account to your friend so they can play your games on their Switch or Switch 2. Both consoles have to be nearby, and you can only give them a two-week trial to play that game, which also temporarily removes it from your own account. Changing your license settings keeps you from sharing virtual game cards in this way. Nintendo Wins Without Reinvention Nintendo will sell consoles because fans can't get enough of its exclusive games. At the time of this writing—two weeks after launch—all signs already point to the Switch 2 being a mega mushroom-sized success. People worldwide turned up on launch day in record numbers—many even attending midnight launches—to buy Nintendo's new game system. Nintendo's already shattered global sales records with over 3.5 million Switch 2 units sold within its first four days of going on sale. That's a lot of damn Switch 2 units sold just to play a refreshed version of Mario Kart and Cyberpunk 2077, a game that came out five years ago. Do we yearn for the days of Nintendo introducing a new gimmick with every new console release? Yes, but the Switch 2 is the familiar sequel to the original Switch, as the iPhone 3G was the successor to the first-gen iPhone. The Switch 2 is more powerful, and games run better in every way, but Nintendo routinely proves that if you design games specific to hardware, you'll get more out of them—not just in graphics but in controls and gameplay. The Switch 2 is the console that we'll keep with us often, perhaps even closer than our Steam Decks because we may bring it out for a single session on the go or share it with friends in various ways that you can't with a PS5, Xbox, or PC. There were few wholly new, must-have games on launch day, but they're coming. Nintendo knows a steady release of games featuring its most beloved characters will keep the Switch 2 momentum going. Third-party developers have been dying for more power to port their typically more graphics-intensive games to Nintendo's consoles—and now they're getting just that. So long as there's no drought of big game releases—like there were in the dark GameCube and Wii U days—Nintendo may just '1-Up' itself with the Switch 2. See Nintendo Switch 2 at Walmart See Switch 2+ Mario Kart World Bundle at Walmart

Why Nintendo Stock Surged Today
Why Nintendo Stock Surged Today

Yahoo

time4 hours ago

  • Yahoo

Why Nintendo Stock Surged Today

Nintendo stock surged again today thanks to strong demand for its Switch 2 console. After selling out of its initial launch shipments, Switch 2 is now being restocked by retailers. The Switch 2 launch has been a big success for Nintendo. 10 stocks we like better than Nintendo › Nintendo (OTC: NTDOY) stock saw another day of big gains in Wednesday's trading. The company's share price gained 6.1% in the daily session and is now up 56.5% across 2025. Nintendo's gains today were driven by indications that demand for its recently released Switch 2 gaming console remains quite high. The Switch 2 quickly became the fastest-selling gaming platform in history following its release earlier this month, and the new system is powering a strong rally for Nintendo stock. Nintendo released its Switch 2 platform on June 5, and the new console has gotten off to a fantastic start. The console, which launched at a $449 price point, sold more than 1.1 million units in the U.S. within its first week on store shelves. The performance was good enough to make it the most successful video game platform launch in history. On a worldwide basis, the Switch 2 managed to sell 3.5 million units in just four days -- a performance that also set a new sales record. Now, new shipments from Nintendo mean that retailers are restocking the red-hot console -- and reports suggest that the platform is continuing to quickly sell out. Nintendo appears to have a big hit on its hands with the Switch 2. Unlike some other console launches, the company did a commendable job ensuring that it had a lot of units produced -- but demand still appears to be significantly exceeding supply at some point. While there is some risk for investors that front-loaded demand for the new console may not provide a great indicator as to the platform's long-term performance outlook, the launch has clearly gone very well. Before you buy stock in Nintendo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nintendo wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor's total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends Nintendo. The Motley Fool has a disclosure policy. Why Nintendo Stock Surged Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Will the Switch 2 Send Nintendo's Stock to the Next Level?
Will the Switch 2 Send Nintendo's Stock to the Next Level?

Yahoo

time4 hours ago

  • Yahoo

Will the Switch 2 Send Nintendo's Stock to the Next Level?

Nintendo's recently launched Switch 2 console has been breaking records. The company is expecting sales to rise by more than 60% this year. Its valuation is a bit rich, with the stock trading at close to 50 times its trailing earnings. 10 stocks we like better than Nintendo › The latest video game console from Nintendo (OTC: NTDOY) is now out. The Switch 2 is a newer version of the company's original Switch device, and the early indications are that it is a big hit thus far. With shares of Nintendo already up more than 40% this year (returns as of June 13), could this send this stock to even higher levels in the weeks and months ahead? Here's a closer look at what the early numbers are for the Switch 2, and whether Nintendo's stock is a no-brainer buy at this point. The Switch 2 officially launched on June 5. Through just the first four days after its launch, there were more than 3.5 million units sold, making it the fastest-selling Nintendo console. The original Switch device didn't even hit 3 million units sold by the end of its first month. The new console also hit a record for U.S. sales during its launch week, with more than 1.1 million units sold. For the fiscal year, which ends in March, Nintendo forecasts that it will end up selling 15 million units, and it looks to have a terrific start already. This is particularly impressive given that the new Switch console is priced $150 higher than the original Switch (launched in 2017), and $100 higher than the Switch OLED version (launched in 2021). Nintendo recently wrapped up a tough fiscal year, which ended on March 31. Its sales fell by more than 30% to 1.2 trillion yen ($8 billion) as hardware sales plummeted more than 31%, with consumers eagerly awaiting the launch of the new Switch 2 console and holding off on new purchases. Profits also fell by 43% to 279 billion yen ($1.9 billion). However, a strong performance by the Switch 2 could turn those fortunes around. The company is expecting sales for the current fiscal year to top 1.9 trillion yen ($13.1 billion), which would translate into a growth rate of around 63%. It would, however, be just a 14% improvement from fiscal 2024. Nintendo's stock has been a raging-hot buy in recent months. The danger, however, is that with such a strong run, it may be difficult for investors to generate strong returns at an inflated price. Currently, Nintendo's stock trades at around 50 times its trailing earnings. Even based on analyst forecasts, it's at a forward price-to-earnings multiple of 46. Those are high earnings multiples to be paying for Nintendo's stock. While the company has some terrific, iconic brands and intellectual property in its portfolio, its growth may not necessarily be strong enough to justify such a high premium. More than 60% revenue growth this year is impressive, but given the steep drop-off it experienced in the most recent fiscal year, a 14% growth rate over a two-year window looks far less impressive. Another risk to factor in is a possible slowdown in global economies, especially as tariffs weigh on countries all over the world. While Switch 2 sales were impressive out of the gate, longer-term question marks remain about how well demand will hold up over the entire year, and whether software sales will also be strong. Nintendo is a great company, but I wouldn't invest in it at its current valuation. A lot would have to go right for the gaming stock to continue rallying much higher than where it is today. Before you buy stock in Nintendo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nintendo wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor's total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool recommends Nintendo. The Motley Fool has a disclosure policy. Will the Switch 2 Send Nintendo's Stock to the Next Level? was originally published by The Motley Fool

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store