Nintendo sold 15 million Switch 2 consoles in months, but NTDOY stock still needs a catalyst to break resistance.
The upcoming Super Mario movie sequel could boost high-margin IP revenue and revive investor sentiment.
Strong cash reserves and a dividend provide downside support as investors watch for a technical breakout.
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Mario and Luigi are two of the most iconic characters in the Nintendo Co. Ltd. (OTCMKTS: NTDOY) universe. The company hopes the brothers can help it cash in on their popularity with the upcoming release of the “Super Mario Galaxy Movie,” due out in April.
The movie is the sequel to the popular “Super Mario Bros. Movie” that hit theaters in 2023. To the surprise of some, the movie was a box-office success, boosting Nintendo’s intellectual property (IP) sales.
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It’s not surprising, then, that Nintendo is hoping the sequel is as popular, if not more, than the original. The movie’s release is scheduled nearly one year to the day after Nintendo released its Switch 2 console.
In its most recent earnings report, the company highlighted cumulative global sell-through of 15 million Switch 2 consoles as of the fourth week of December 2025. That makes it the fastest-selling dedicated video game platform the company has released.
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Prior to the movie’s release, Nintendo is scheduled to release the “Super Mario Bros. Wonder” game, exclusively for the Switch 2. That’s just one of several initiatives the company has planned for the 40th anniversary of Super Mario Bros.
This aligns with Nintendo’s strategy to lean into IP as a revenue stream that can help smooth out the lumpiness of console sales. IP makes up only a fraction of the company’s total revenue. For example, in the first nine months of the company’s 2026 fiscal year, Nintendo reported $54.5 billion in IP-related revenue.
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That was just 3% of the company’s overall sales over that period. But it’s the type of revenue that can go straight to the bottom line.
Even before the Switch 2 launched, Nintendo was facing hurdles in the form of tariffs. The company has mitigated some of those issues by moving some production to Vietnam.
However, before the company’s recent report, concerns were growing about a slowdown in Nintendo’s earnings, which are increasingly affected by memory chip prices. Supporting that line of thinking, the company reported declining year-over-year (YOY) operating margins through the first three quarters of its 2026 fiscal year.
