The Nintendo Switch has continued to sell this year having been up by 95 per cent in the first half of the financial year.

As reported by Bloomberg, the boom in Switch sales has seen Nintendo shares increase by 30 per cent in 2020.

The popularity of the hardware has been evident this year, as the Japanese firm has struggled to meet demands, having increased production to 30 million for its current fiscal year.

However, it is believed by investors that the Japanese firm could see even greater success should it ditch the traditional console cycle. Rather than creating brand new hardware, the games giant could release an updated version of the Switch.

"With every console generation, the install base resets to zero, and their earnings power essentially resets to zero. They can continuously have an install base of say 100 million consoles out there, that just moves along over time," said Toan Tran of 10 West Advisors.

Break the cycle

Moreover, Tran has insisted that Nintendo could break the cycle by adopting a similar concept to Apple, releasing an updated version of the hardware every few years, with backwards compatibility.

Furthermore, Ryan O'Connor, the portfolio manager for investment firm Crossroads Capital has claimed that he thinks Nintendo is in it for the long run with Switch, making it a perpetual platform rather than a cycle.

A new pro Switch console has been heavily rumoured to be in the works.