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Lingering COVID-19 Pandemic Now Causes Nintendo Switch Lite to Sell Out

By Rich Duprey - Jun 22, 2020 at 12:50PM

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It's hard to get a hold of the hybrid game console at any price.

First, the coronavirus pandemic caused Nintendo's (NTDOY 0.00%) popular Switch mobile game console to sell out at retailers everywhere. Now, the lingering impact of stay-at-home orders is resulting in the cheaper version of the console being out of stock as well.

The $200 console can't be had for any amount on Amazon.com (AMZN 2.07%), Best Buy (BBY -0.15%), GameStop (GME 3.27%), or Target (TGT 1.70%), reports tech news site CNET.

3 different colored Nintendo Switch Lites

Image source: Nintendo.

A perfect confluence of events

Video game play has surged in popularity due to the COVID-19 outbreak as gamers on lockdown have turned to online entertainment to while away the hours. 

While there are numerous games available for online play and digital download, the pandemic occurred just as Nintendo's Animal Crossing: New Horizons gained popularity. Over 13 million copies of the game have been downloaded.

Only available on the Switch hybrid game console, Animal Crossing helped fuel massive sales of the Switch and was the top-selling game for the platform in May. Year-to-date, it is second only to Activision Blizzard's (ATVI 0.35%) Call of Duty: Modern Warfare.

The combination of a disrupted electronics supply chain and a massively popular game caused shortages of the original Switch. Nintendo apologized for the inconvenience and promised more were on the way. However, consumers apparently couldn't wait and are now scooping up the Lite versions, which primarily differ from the Switch in that the devices can't be connected to a TV. 

Analysts anticipate that Switch sales will soon surpass those of Nintendo's Wii console, even with the production delays.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Activision Blizzard and Amazon. The Motley Fool recommends Nintendo and recommends the following options: short January 2022 $1940 calls on Amazon, long January 2022 $1920 calls on Amazon, long January 2022 $75 calls on Activision Blizzard, and short January 2022 $75 puts on Activision Blizzard. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Nintendo Co., Ltd. Stock Quote
Nintendo Co., Ltd.
NTDOY
$53.94 (0.00%) $0.00
Target Corporation Stock Quote
Target Corporation
TGT
$172.48 (1.70%) $2.88
Best Buy Co., Inc. Stock Quote
Best Buy Co., Inc.
BBY
$80.30 (-0.15%) $0.12
Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$143.55 (2.07%) $2.91
GameStop Corp. Stock Quote
GameStop Corp.
GME
$40.74 (3.27%) $1.29
Activision Blizzard, Inc. Stock Quote
Activision Blizzard, Inc.
ATVI
$80.79 (0.35%) $0.28

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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