Nintendo Switch 2 Sales Reach 196,359 Units in April
"Game On" is The Fly's weekly recap of the stories powering up or beating down video game stocks.NEW RELEASES:This week's most notable new release is IO Interactive's action-adventure game "007 First Light," which releases for PC, PlayStation 5, and Xbox Series X/Son May 27, with a Nintendo Switch 2version slated for release later this year. Additionally, Nintendo is releasing a photo-doctoring mobile app called "Pictonico" for iOS and Android on May 28.CIRCANA:Last week, Circana analyst Mat Piscatella said that U.S. video game spending totaled $4.3B in April 2026, growing 3% when compared to a year ago. Year-to-date 2026 spending finished the month 5% higher than 2025, at $18.8B. Gains across content and hardware offset declines in accessories. April hardware spending increased by 34% when compared to a year ago, to $261M. Spending on Nintendo Switch 2 hardware offset declines seen across Switch, down 69% versus April 2025, Xbox Series, down 43%, and PlayStation 5, down 30%. Nintendo Switch 2 was again the best-selling hardware platform across both units and dollars for April and 2026 year-to-date, with PlayStation 5 again ranking 2nd across both measures and time periods. After 66 months in market, PlayStation 5's lifetime installed base finished April tracking 2% ahead of PlayStation 4 on a time aligned basis. Nintendo Switch 2 led the sales pace of the original Nintendo Switch by 11%. Nintendo monthly dollar share of video game hardware spending finished April 2026 at its highest point since July 2025.Content spending finished April at $3.8B, growing 2% when compared to a year ago, noted Piscatella. Year-to-date content spending was 3% ahead of 2025's pace, at $16.7B. April spending on Console content was the primary driver of overall content growth as spending increased by 21% compared to a year ago. Subscription spending grew 13% year-on-year, while PC Content was up slightly. Nintendo's "Tomodachi Life: Living the Dream" was the best-selling game of April, delivering over $41M in physical and projected digital spending. "Tomodachi Life: Living the Dream" debuted as the 9th best-selling game of 2026 year-to-date. Helped by "Tomodachi Life: Living the Dream," consumer spending on new physical software grew 44% in April when compared to a year ago, to $96M. Year-to-date spending on new physical software increased by 9%. Capcom's"Pragmata" ranked as the 2nd best-selling game of April 2026. Pragmata was the month's best-seller on PlayStation platforms, placed 2nd on the PC aggregated storefronts chart and ranked 3rd on Xbox. It was among the top 15 sellers of the month on Nintendo platforms.TAKE-TWO:Meanwhile, Take-Tworeported Q4 results last week, with net bookings for the period coming in slightly above expectations, though the company did provide conservative outlooks for Q1 and FY27. Of note, however, Take-Two CEO Strauss Zelnick confirmed that the company's highly anticipated game "Grand Theft Auto VI" will release on November 19, 2026. "Our Fiscal 2026 performance was exceptional and exceeded our initial expectations at every label," Zelnick said, "We believe Fiscal 2027 will establish new record levels of operating performance driven by the November 19th launch of Grand Theft Auto VI, along with strong execution across our portfolio. We expect to sustain this higher level of scale, generate strong cash flows, and deliver long-term shareholder value as we release our robust development pipeline, continue to optimize our live services and capitalize on new business opportunities."UBISOFT RESULTS:Ubisoftalso reported Q4 results last week, with the French game maker reporting a 54% year-over-year drop in net bookings for the period. The company noted the comparison to the same period last year, during which "Assassin's Creed Shadows" released, but also confirmed its FY2026-2027 net bookings guidance for a decline in high single digits. "The Group expects a significantly stronger and diversified pipeline of content to come over FY2027-28 & FY2028-29, supported by releases across its major brands including Assassin's Creed, Far Cry and Ghost Recon as well as an acceleration of its Live services driven by Rainbow Six Siege," Ubisoft said. "In this context, the Group expects to get back to Free Cash Flow generation and positive non-IFRS EBIT in FY2027-28 and generate robust Free Cash Flow in FY2028-29, with positive cumulated Free Cash Flow during the FY2026-27 to FY2028-29 period."SWITCH 2 SALES/OUTPUT:Nintendo's Switch 2 was the top-selling gaming console in Europe in April 2026, with 196,359 units sold, bringing the console's lifetime unit sales in Europe to 4.53M, VGChartz's William D'Angelolast week, citing VGChartz estimates. Meanwhile, Bloomberg's Takashi Mochizukithat the Japanese gaming giant has asked partners and suppliers to make roughly 20M Switch 2 units in the year through March, approximately 20% more consoles than the company guided for earlier this month. The latest output plan is not final and could change based on demand, according to people familiar with the matter.BUNGIE:Sony's Bungiein a statement that it is concluding active development for "Destiny 2," which first launched in 2017 and has had regular content updates ever since. Following the news, Bloomberg's Jason Schreierthat Bungie plans to lay off a significant number of workers as it concludes active development on "Destiny 2." The company, which also released multiplayer shooter "Marathon" earlier this year, does not have a new project lined up for the development team behind "Destiny 2," and does not plan to immediately begin production on "Destiny 3," Schreier noted.MORE VIDEO GAME NEWS:Embracerannounced thethe group into two publicly listed companies, through the spin-off of Fellowship Entertainment with a listing on Nasdaq Stockholm planned for calendar year 2027Nintendo's "Tomodachi Life: Living the Dream" was the top-selling physical video game in Japan for the week of May 11-17,Microsoft's "Forza Horizon 6" has already sold 5M units,Meanwhile, Microsoft has agreed to pay $250M to settle investor litigation over its massive takeover Activision Blizzard,Hasbrohas canceled a "Dungeons & Dragons" game from independent video game maker Giant Skull,
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Apple to Raise Prices Due to Memory Shortage
- Memory Shortage Impact: Apple CEO Tim Cook stated that price increases are 'unavoidable' due to global memory shortages, indicating that even market leaders cannot escape cost pressures, which may affect consumer purchasing decisions.
- Price Increase Expectations: Analysts predict that Apple may raise the prices of the iPhone Pro and Pro Max by $100 each, while lower-end devices might remain unchanged, potentially altering the competitive landscape in the high-end market.
- Market Share Opportunity: As Android manufacturers cut specs or raise prices due to rising memory costs, Apple could capitalize on this by attracting budget-conscious consumers, thereby expanding its market share, especially with smartphone prices expected to rise by 20% this year.
- Supply Chain Response Strategy: Cook mentioned that Apple might leverage its cash reserves to increase memory supply, demonstrating the company's adaptability in facing supply chain challenges, aiming to ensure the ongoing competitiveness of its products.
Semiconductor Supply Shortage Persists Amid AI Boom
- Strong Market Demand: According to McKinsey, the global semiconductor market is projected to reach $1.6 trillion by 2030, up from $775 billion in 2024, indicating that the robust demand driven by AI technology will persist, further solidifying TSMC's leadership in the industry.
- Capacity Expansion Plans: TSMC plans to invest $265 billion in building 10 semiconductor fabrication plants in the U.S.; although it will take time to bring these new fabs online, this initiative will significantly enhance its capacity to meet the growing customer demand, particularly in the AI sector.
- Industry Leadership: TSMC commands an impressive 73% share of the global pure-play foundry market, having produced over 12,000 products for 534 customers last year, underscoring its critical role in the global semiconductor supply chain and serving as a barometer for industry health.
- Investment Opportunities: With the advent of the AI supercycle, many semiconductor stocks are currently attractively valued, providing investors with opportunities to invest in this context and potentially achieve substantial returns in the coming years.
TSMC's Outlook on the AI Supercycle
- Market Share Dominance: TSMC commands a 73% share of the global pure-play foundry market, having produced over 12,000 products for 534 customers last year, underscoring its critical role in the semiconductor industry and reinforcing its status as a barometer for sector health.
- Supply Shortage Outlook: CEO C.C. Wei indicated that global semiconductor supply will remain insufficient to meet demand for several years, despite the company bringing new fabs online, reflecting the robust demand driven by the rapid adoption of AI technologies.
- Massive Investment Plans: TSMC is set to invest $265 billion in building 10 semiconductor fabrication plants in the U.S.; although these fabs will take time to come online, this investment lays a strong foundation for future growth amid surging AI infrastructure needs.
- Industry Growth Prospects: McKinsey projects the global semiconductor market could reach $1.6 trillion by 2030, and with TSMC positioned to benefit from the AI supercycle, the company is expected to achieve sustained strong growth, making it a focal point for investors.
Gen Z Fuels Box Office Comeback
- Increased Viewing Frequency: Data from Fandango indicates that in 2025, Gen Z averaged seven movie viewings, matching millennials, while Generation X and baby boomers averaged only six, highlighting Gen Z's growing significance in box office dynamics.
- Expanding Market Share: Gen Z accounted for nearly 40% of moviegoers in North America, with AMC's marketing VP Carrie Trotter noting that not only is their number increasing, but their viewing frequency is also rising year over year, potentially making them the most crucial audience in the future.
- Popularity of Loyalty Programs: Participation in movie loyalty programs among Gen Z has tripled since the pandemic, with AMC's A-List attracting a significant number of young viewers, indicating their willingness to spend more for social activities and movie experiences.
- Social Experience Priority: Gen Z prioritizes social experiences when choosing films, with Trotter stating that they prefer to enjoy movies with friends and family, suggesting that this social aspect drives box office growth beyond mere film content.
IMAX Explores Sale, Sparks Market Buzz
- Stock Surge: IMAX shares rose approximately 14% on sale speculation, reaching nearly $39 per share with a market cap of about $2.1 billion, indicating strong market interest in potential buyers from Hollywood studios and tech companies.
- Potential Buyers: Analysts suggest that potential acquirers of IMAX include Netflix, Apple, and Sony, all of which possess strong technological and content capabilities, and acquiring IMAX could enhance their competitive edge in the premium cinema market.
- Financial Performance: IMAX generated a record $1.28 billion at the global box office last year, a more than 40% increase, with projected revenue of $448 million in 2026, showcasing robust business growth potential despite its valuation not returning to pre-pandemic levels.
- Market Expansion: IMAX plans to install 160 to 175 new systems by 2026 and is partnering with countries like China, Japan, and South Korea to screen local language content, further reducing dependence on any single market and enhancing its competitive position globally.
IMAX Shares Surge on Speculation of Potential Sale
- Stock Surge: IMAX shares rose approximately 14% on Friday, reaching nearly $39 per share with a market capitalization of around $2.1 billion, reflecting positive market sentiment regarding the company's potential sale and investor interest in IMAX as a strategic acquisition target.
- Preliminary Talks: Sources indicate that IMAX has engaged in 'preliminary talks' through intermediaries, although no formal acquisition proposals have been made, suggesting the company is exploring strategic options while remaining open to future opportunities.
- Attractiveness Analysis: Wall Street analysts broadly view IMAX as an attractive asset, with Wedbush analysts noting that IMAX's globally recognized brand and asset-light licensing model are currently undervalued, potentially drawing interest from buyers including Netflix, Apple, and Sony.
- Future Outlook: IMAX anticipates installing 160 to 175 new systems by 2026 and plans to expand screenings of local language content globally, further reducing dependence on any single market, thereby laying the groundwork for future box office growth and margin expansion.
Apple to Raise Prices Due to Memory Shortage
- Memory Shortage Impact: Apple CEO Tim Cook stated that price increases are 'unavoidable' due to global memory shortages, indicating that even market leaders cannot escape cost pressures, which may affect consumer purchasing decisions.
- Price Increase Expectations: Analysts predict that Apple may raise the prices of the iPhone Pro and Pro Max by $100 each, while lower-end devices might remain unchanged, potentially altering the competitive landscape in the high-end market.
- Market Share Opportunity: As Android manufacturers cut specs or raise prices due to rising memory costs, Apple could capitalize on this by attracting budget-conscious consumers, thereby expanding its market share, especially with smartphone prices expected to rise by 20% this year.
- Supply Chain Response Strategy: Cook mentioned that Apple might leverage its cash reserves to increase memory supply, demonstrating the company's adaptability in facing supply chain challenges, aiming to ensure the ongoing competitiveness of its products.
Semiconductor Supply Shortage Persists Amid AI Boom
- Strong Market Demand: According to McKinsey, the global semiconductor market is projected to reach $1.6 trillion by 2030, up from $775 billion in 2024, indicating that the robust demand driven by AI technology will persist, further solidifying TSMC's leadership in the industry.
- Capacity Expansion Plans: TSMC plans to invest $265 billion in building 10 semiconductor fabrication plants in the U.S.; although it will take time to bring these new fabs online, this initiative will significantly enhance its capacity to meet the growing customer demand, particularly in the AI sector.
- Industry Leadership: TSMC commands an impressive 73% share of the global pure-play foundry market, having produced over 12,000 products for 534 customers last year, underscoring its critical role in the global semiconductor supply chain and serving as a barometer for industry health.
- Investment Opportunities: With the advent of the AI supercycle, many semiconductor stocks are currently attractively valued, providing investors with opportunities to invest in this context and potentially achieve substantial returns in the coming years.
TSMC's Outlook on the AI Supercycle
- Market Share Dominance: TSMC commands a 73% share of the global pure-play foundry market, having produced over 12,000 products for 534 customers last year, underscoring its critical role in the semiconductor industry and reinforcing its status as a barometer for sector health.
- Supply Shortage Outlook: CEO C.C. Wei indicated that global semiconductor supply will remain insufficient to meet demand for several years, despite the company bringing new fabs online, reflecting the robust demand driven by the rapid adoption of AI technologies.
- Massive Investment Plans: TSMC is set to invest $265 billion in building 10 semiconductor fabrication plants in the U.S.; although these fabs will take time to come online, this investment lays a strong foundation for future growth amid surging AI infrastructure needs.
- Industry Growth Prospects: McKinsey projects the global semiconductor market could reach $1.6 trillion by 2030, and with TSMC positioned to benefit from the AI supercycle, the company is expected to achieve sustained strong growth, making it a focal point for investors.
Gen Z Fuels Box Office Comeback
- Increased Viewing Frequency: Data from Fandango indicates that in 2025, Gen Z averaged seven movie viewings, matching millennials, while Generation X and baby boomers averaged only six, highlighting Gen Z's growing significance in box office dynamics.
- Expanding Market Share: Gen Z accounted for nearly 40% of moviegoers in North America, with AMC's marketing VP Carrie Trotter noting that not only is their number increasing, but their viewing frequency is also rising year over year, potentially making them the most crucial audience in the future.
- Popularity of Loyalty Programs: Participation in movie loyalty programs among Gen Z has tripled since the pandemic, with AMC's A-List attracting a significant number of young viewers, indicating their willingness to spend more for social activities and movie experiences.
- Social Experience Priority: Gen Z prioritizes social experiences when choosing films, with Trotter stating that they prefer to enjoy movies with friends and family, suggesting that this social aspect drives box office growth beyond mere film content.
IMAX Explores Sale, Sparks Market Buzz
- Stock Surge: IMAX shares rose approximately 14% on sale speculation, reaching nearly $39 per share with a market cap of about $2.1 billion, indicating strong market interest in potential buyers from Hollywood studios and tech companies.
- Potential Buyers: Analysts suggest that potential acquirers of IMAX include Netflix, Apple, and Sony, all of which possess strong technological and content capabilities, and acquiring IMAX could enhance their competitive edge in the premium cinema market.
- Financial Performance: IMAX generated a record $1.28 billion at the global box office last year, a more than 40% increase, with projected revenue of $448 million in 2026, showcasing robust business growth potential despite its valuation not returning to pre-pandemic levels.
- Market Expansion: IMAX plans to install 160 to 175 new systems by 2026 and is partnering with countries like China, Japan, and South Korea to screen local language content, further reducing dependence on any single market and enhancing its competitive position globally.
IMAX Shares Surge on Speculation of Potential Sale
- Stock Surge: IMAX shares rose approximately 14% on Friday, reaching nearly $39 per share with a market capitalization of around $2.1 billion, reflecting positive market sentiment regarding the company's potential sale and investor interest in IMAX as a strategic acquisition target.
- Preliminary Talks: Sources indicate that IMAX has engaged in 'preliminary talks' through intermediaries, although no formal acquisition proposals have been made, suggesting the company is exploring strategic options while remaining open to future opportunities.
- Attractiveness Analysis: Wall Street analysts broadly view IMAX as an attractive asset, with Wedbush analysts noting that IMAX's globally recognized brand and asset-light licensing model are currently undervalued, potentially drawing interest from buyers including Netflix, Apple, and Sony.
- Future Outlook: IMAX anticipates installing 160 to 175 new systems by 2026 and plans to expand screenings of local language content globally, further reducing dependence on any single market, thereby laying the groundwork for future box office growth and margin expansion.
