After the announcement of the new console, Nintendo's stock prices fell
Yesterday, Nintendo officially revealed the Nintendo Switch 2 console. As noted by Bloomberg, despite the buzz surrounding the announcement, on the morning of January 17, the company's stock price on the Tokyo Stock Exchange fell by 5.9%. This marks the largest single-day drop for Nintendo since late September 2024.
According to analysts surveyed by Bloomberg, Nintendo failed to impress investors.
"The shares fell because the announced Nintendo Switch 2 completely matched the leaks online and didn't deliver any surprises. However, I expect the stock price to recover after the presentation on April 2, when the release date and price of the console will be announced," said senior analyst at Toyo Securities, Hideki Yasuda.
By the time of publication, Nintendo's stock price had slightly increased. The decline now stands at 4.26%, with one share trading at 9,181 yen ($58.94) on the exchange.
The initial version of the Bloomberg report also included a sales forecast for the Nintendo Switch 2 during its debut year. Analyst Robin Zhu from Sanford C. Bernstein stated that the console could sell 20 million units in 12 months—5 million more than the original Nintendo Switch did in the same time frame. These details were later removed from the article.
The Nintendo Switch, released in 2017, is the third best-selling console in history. By September 30, 2024, gamers worldwide had purchased it 146.04 million times. Only the Nintendo DS (154.02 million) and PlayStation 2 (160 million) were in higher demand.
