The announcement of the new Nintendo Switch had almost no effect on the company's stock price
Yesterday, June 6, Nintendo announced a new Nintendo Switch with an OLED screen. Although the gaming community reacted very coolly to the presentation, investors did not react to it. The company’s stock price has barely changed.
On the eve of the announcement, Nintendo shares were worth ¥66.76 thousand ($602.9) apiece. On the morning of June 7, the price tag collapsed to ¥66.08 thousand ($596.7). But then the price went up. At the time of writing, you can buy shares of a Japanese company for ¥66.7 thousand ($ 602.4).
As for gamers, they are mostly dissatisfied with the characteristics of the new Switch. Earlier, the media reported that this version of the console will be much more powerful. The OLED model did not have an improved processor or 4K support.
Nintendo Switch Switch OLED pic.twitter.com/oAyT3kaGjX
— (Not) YoutubeKids (@RealYouTubeKids) July 6, 2021
As a result, some players criticized the publications that wrote about the rumors around the Switch. Bloomberg, one of the first to report on Nintendo’s plans, especially got it. The journalists were even accused of having “invented” the news.
My entire career, I've watched the tech news industry mill its own rumors and then be disappointed when the reality doesn't line up to the things they made up. https://t.co/AkBAftlOgG
— Eric Ravenscraft (@LordRavenscraft) July 6, 2021
But analysts and gaming journalists disagree that the initial rumors were far from the truth. According to Tom Warren, editor-in-chief of The Verge, technology companies are constantly changing their plans during the development of a new product. And analyst Mat Piscatella added that Nintendo, in principle, is famous for its unpredictability.
I don't think Bloomberg "made up" anything. My entire career, I've watched the tech industry alter their products during their development. That's how product development works ¯\_(ツ)_/¯ https://t.co/A3kKoHlZAE
— Tom Warren (@tomwarren) July 6, 2021
As another analyst Daniel Ahmad wrote, it was hard to believe that Switch Pro was really coming out now. Last year and this year, the Japanese struggled to meet the demand for existing Switch models (27.4 million consoles were sold worldwide in 2020). Nintendo also had supply issues due to the pandemic. Therefore, he is not waiting for news about a more powerful version of Switch until 2022.
Ahmad pointed out that the Switch OLED model is needed primarily to make the Switch more attractive to new customers. At the same time, it can push Switch Lite owners to buy a new console, maintain overall demand over the next year and strengthen Switch’s position as a premium console.
The Switch OLED edition is primarily designed to increase the appeal of Switch to new buyers, provide an incentive for Switch Lite owners to upgrade, sustain overall demand over the next year and strengthen the pitch for Switch as a premium console worthy of its price point.
— Daniel Ahmad (@ZhugeEX) July 6, 2021
A similar opinion was expressed by Piscatella. He recalled that Nintendo had already released revisions of its other consoles, which were supposed to keep sales at the right level, prevent prices from falling and stocks from lying in warehouses.
https://twitter.com/MatPiscatella/status/1412409245585248261
