Nintendo’s Stock Drops After Nintendo Switch Announcement

On Friday, Nintendo debuted Nintendo Switch, a new video game system that is a hybrid mix – part tablet and part video game console.

How much does Nintendo Switch cost, you ask? $299. While some Nintendo fans may be excited about the possibility of a portable gaming console, investors are a little bit more skeptical. In fact, following the announcement of the Nintendo Switch, Nintendo’s stock dropped by 6.34%.

Nintendo’s previous video game console launch was the Wii U. The Wii U only sold 13 million units over the course of 5 years, which is a fraction of Wii units sold in the same time period. In fact, when the Wii debuted it was a hit, selling over 100 million units over time.

But, it is worth pointing out that this is just the latest Nintendo announcement that has investors pessimistic about the future of the company. Last December, Nintendo released Super Mario Run. It was essentially a modern day mobile gaming version of the classic “Super Mario” video games. Analysts initially predicted that the company will earn $100 million in the app’s first couple of weeks. However, by mid-December Nintendo’s stock price dropped nearly 8%.

What is the Nintendo Switch?

Nintendo Switch

Nintendo’s Switch is the latest video game console following the WiiU. The main features of Nintendo Switch include a tablet that can work as both the gaming console and a portable gaming device, two attachable “Joy-Con” controllers and a docking station to charge the device. All of which making Nintendo Switch a mixture between Nintendo’s classic Game Boy and the Wii. At launch The new gaming system will come with several video games including a new version of The Legend of Zelda and Mario Kart, albeit sold separately. 

Nintendo’s future rests highly in preorders and sales. Optimistic investors will have to wait until Switch’s release in March to see if fans are willing to pay $299 for a hybrid gaming device.