Nintendo & Western Digital to Create Switch Memory Cards

Japan-based video game developer Nintendo Co. NTDOY) and Western Digital Corporation WDC recently collaborated to launch Nintendo Switch-licensed microSDXC SanDisk memory cards with capacity of 64 GB and 128 GB.

Per Nintendo, the memory cards are exclusively for Nintendo Switch video game systems and will be available for sale next month. We believe that the brand value of SanDisk and strong demand for Nintendo Switch console will help these cards to gain traction in a short span.

Per Nintendo, as of Jun 30, 2017, 4.7 million units of Nintendo Switch (launched in March) have been sold globally. The company targets to sell around 10 million units in the first year, same as what Microsoft MSFT Xbox One achieved in its first year.

The collaboration also augurs well for Western Digital as its customer base will expand. The Switch exclusivity will help the company penetrate the Japanese market faster where Nintendo has a significant presence.

Western Digital shares have gained 31.7%, significantly outperforming the 12.8% rally of the industry it belongs to.

Higher Memory to Boost Demand for Nintendo's Games

In Japan, Nintendo Switch has outperformed Sony's SNE PS4. In the first 26 weeks, the company sold 1.5 million units of Nintendo Switch in the country, which is more than double the number of PS4 units sold over the same time frame when it was launched in 2013. Reportedly, it took PS4 69 weeks to reach the figure which Nintendo Switch achieved in 26 weeks.

Moreover, Nintendo Switch has also fared better than the company's Wii U gaming console, which took nearly a year to sell 5 million units.

Western Digital Corporation Price

Western Digital Corporation Price | Western Digital Corporation Quote

However, owing to a limited storage capacity of 32 GB, Nintendo Switch users are unable to enjoy the full gaming experience for certain games that require additional storage due to their large file formats (in the range of 50-100 GB).

One such game as noted by Nintendo is NBA 2K18, which necessitates the use of the new memory card for accessing its full version. The company has many such advanced games in its pipeline. These include the new Pokemon and Metroid 4 games which it plans to release in 2018. FIFA 18 is also scheduled for launch this month.

However, buying an extra memory card for such games will lead to an increase in price for gaming on the console, which is a concern.

Currently, Nintendo carries a Zacks Rank #2 (Buy) while Western Digital has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

4 Surprising Tech Stocks to Keep an Eye On

Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really takes off.

See Stocks Now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Western Digital Corporation (WDC): Free Stock Analysis Report

Sony Corp Ord (SNE): Free Stock Analysis Report

Microsoft Corporation (MSFT): Free Stock Analysis Report

Nintendo Co. (NTDOY): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More