Nintendo Switch sales are 'much stronger' than the PS4

People line up to get their hands on the Nintendo Switch game console at an electronics store in Tokyo, Japan March 3, 2017. REUTERS/Toru Hanai

Nintendo's new Switch console sold out everywhere on launch and is breaking sales records worldwide.

According to Atul Goyal, an analyst at Jefferies, the system outsold Sony's PlayStation 4 by 130% over its first 26 weeks in Nintendo's home country of Japan.

In the first week it was available, the console sold more than 329,000 units, about 20,000 more units than the PS4 did after its launch which was a "much stronger" way to start, Goyal said.

Demand for the Switch isn't slowing down at all. In fact, Switch sales in Japan have been growing ever since its launch, according to Goyal. Recently, Nintendo has been selling 10 to 14 times the number of Switch consoles that Sony is selling of PS4s.

All of this demand comes as supplies of the Switch remain low. Nintendo has already sold 4.6 million units globally, according to a previous note from Goyal, and it expects to sell about 10 million units this fiscal year. Sony expects to sell 18 million PS4s.

Monetizing the platform is likely to come easier to Nintendo as well. Building out a large install base is important for future returns and Nintendo is doing well to establish a wide base, Goyal says.

Nintendo shares are up 47.06% this year so far.