Nintendo stock prices drop six percent after the official Nintendo Switch event, leading some gamers and analysts to worry about the future and potential of the console.
After months of waiting, Nintendo finally unveiled the specs, price, and release date for its upcoming console, Nintendo Switch. While many of the details were on par with expectations, some aspects left games and financial analysts a little disappointed.
That disappointment led to another drop in Nintendo stock. In fact, shares in Nintendo were down a painful six percent in trading on Japanese markets after the event. That’s a substantial drop considering the Nintendo Switch is meant to help keep Nintendo competitive against a growing mobile gaming market.
This isn’t the first time Nintendo’s stock has seen a drop in the last six months. In fact, Nintendo has experienced a rollercoaster ride when it comes to its stock prices and valuation. Much has happened for the gaming giant, though not all of it has been positively received by gamers.
Over the summer, Nintendo saw a jump in its stock price thanks to the initial success of Pokemon GO. However, stock prices dropped again once gamers and investors realized the title was developed by Niantic, not Nintendo. Prior to the drop, Pokemon GO helped Nintendo break stock market records in Tokyo.
When Nintendo was gearing up to announce the Nintendo Switch a few months ago, gamers and investors were again excited for what the company had in store, and helped push the firm’s stock up significantly. The hype was so heavy that it helped drive Nintendo’s market value up by a billion dollars. But, once again, with the release of the Nintendo Switch trailer and a handful of details, stocks took a dive as gamers worried about the potential of the console.
Finally, Nintendo’s stock experienced a strong boost at the release of its mobile game, Super Mario Run. Nintendo had seemingly heard the desires of its fans and was delivering a mobile Mario title. Unfortunately, the due to lackluster reviews and a high price tag for the game, Super Mario Run underperformed, once again leading to a drop in Nintendo stock prices.
The highly-anticipated Nintendo event finally revealed a handful of details about the Nintendo Switch that gamers have been craving. The new console-handheld hybrid will come with a 720p screen and 32 GB of internal space. Games will come on special cards and will cost the industry standard of $60. The Nintendo Switch itself will run gamers $299 USD ($399 CAD), which aligns with leaked pricing information from Target this week, and will be available March 3rd.
What do you think about Nintendo’s stock prices after the Nintendo Switch event?
Nintendo Switch will release on March 3, 2017.