The Nintendo (NTDOY) Switch proved to be one of the hottest-selling products in months, giving many retailers a sales injection they so badly needed.
Target (TGT) - Get Report , GameStop (GME) - Get Report and Best Buy (BBY) - Get Report all touted the new Nintendo system for helping to lift sales in the the first quarter. Research outfit NPD Group reported that video game sales in April and March were up, after declining for 10 consecutive months, thanks to the Switch.
Although, in an interview with TheStreet, GameStop COO Tony Bartel did admit that the launch of the Switch played a part in the video game retailer's 2.4% decline in same-store sales in the U.S., which sent its stock tumbling on Thursday. Nintendo was unable to distribute enough of the product to stores to meet the high consumer demand, sending shoppers online, said Bartel.
But, a 2.4% decline in same-store sales is far better than the 16.3% plunge GameStop saw in the prior period, before the Nintendo Switch launched.
"Whenever there's a launch of a highly-allocated product, like the Switch, it's difficult for Nintendo to allocate at our fair market share," Bartel said. "We were selling the Switch before it hit the warehouse."
Still, the Switch has kept shares of Nintendo soaring. From the end of February, just before the console hit retailers, to today, Nintendo's stock has spiked 43.34%.
Click here for the latest business headlines.
Read More Trending Articles:
- Why Alibaba's Founder Jack Ma Thinks You Will Eventually Only Work Four Hours a Day
- Biotech Movers: Immunomedics, Aerie, Exelixis
- Here's How Fast Tesla's Model 3 May Be -- Doesn't It Seem Really Slow?
- Now We Have an Idea When the iPhone 8 Will Launch, Thanks to Vacationing Apple Employees
Editors' pick: Originally published May 26.