Nintendo's Next-Gen Console Delay Rumors Plunge Stock Price by 8.8%

What goes up must come down. Nintendo Co. experienced a significant drop in its stock value, plummeting as much as 8.8%, following the announcement that the much-anticipated successor to the Switch console will not make its debut until 2025.

The delay was communicated to game publishers, indicating a shift from the expected late 2024 release to the early months of 2025, with Bloomberg News highlighting that some partners were informed not to expect the new console before March 2025. This setback marks Nintendo's largest intraday stock decline since October 2021, although it later stabilized to a 5.8% decrease.

Warp Pipe Weekly

A weekly recap of all things Nintendo

SUBSCRIBE

By submitting your email, you agree to our Terms of Service and Privacy Notice. You can opt out at any time.

Follow us on social media!

Sign up for the Warp Pipe Weekly Newsleter

Get all of your Nintendo News

SUBSCRIBE

By submitting your email, you agree to our Terms of Service and Privacy Notice. You can opt out at any time.

Market Reaction to Nintendo's Switch 2 Delay Rumors

The news of the delay has potentially shaken investor confidence, especially after the stock has been trading at all-time highs, fueled by expectations of a new console replacing the seven-year-old Switch in 2024. Market analysts, including Mio Kato from LightStream Research, speculate that the delay could lead to a rough financial outlook for Nintendo in the fiscal year ending March 2025, particularly if the release of key software titles is also postponed.

Impact on Software Releases and Switch Hardware Sales

The delay in launching the next-generation console is expected to impact Nintendo's strategy for releasing new games for its flagship franchises, such as Legend of Zelda, Mario, and Splatoon. With the company likely holding back major titles for the new hardware, the wait could dampen the lucrative software segment of Nintendo's business and continue a trend of remastered releases, such as the fan-favorite Paper Mario: The Thousand Year Door set to arrive later this year.

Furthermore, Nintendo President Shuntaro Furukawa has recently sidestepped questions regarding new hardware, focusing instead on the challenges of selling more units of the current Switch console, which has already seen 139 million units sold, up almost 10 million units since August 2023.

Investor Outlook and Future Plans

Despite the immediate negative reaction, some market watchers, like Bernstein analyst Robin Zhu, view the dip in Nintendo's share price as a buying opportunity, anticipating an official announcement regarding the new console within the next six months. This outlook suggests that, while the delay is a setback, it may also build anticipation and potentially strengthen Nintendo's market position in the long run (not financial advice, of course).

[Source]