Following reports of Nintendo Co.'s decision to postpone the launch of its Switch successor until the beginning of the following year, the company's shares experienced a significant decline. This drop amounted to as much as 8.5% in Tokyo, marking the sharpest intraday decrease in a year.
(Photo : Enrique Vidal Flores from Unsplash)
It's only 2023 when Apple decided to test console games on iPhone 15. From then, you can now play PC games using a controller, and a Nintendo Switch Joy-Con is one of many options to use.
Impact of Postponement
According to Bloomberg, Nintendo informed its game publishing partners of the delay, shifting the release of the next-generation video game console from the last quarter of this year to the early months of 2025.
Some partners were cautioned not to anticipate the unveiling of the yet-to-be-announced console until March 2025 at the earliest. Investors, who had been expecting the company to replace the seven-year-old Switch with a new system in 2024, may continue to divest from the stock.
Sentiment surrounding this anticipation drove Nintendo's stock to reach an all-time high last week. However, Goldman Sachs Group Inc. analyst Minami Munakata cautioned that the stock appeared overvalued.
Also Read: Nintendo Switch 2 Rumors: SEGA to Bring 5 Games to Next-Gen Console
A new source has emerged with claims of a delayed release for Nintendo's Switch, now anticipated to hit the market in early 2025.
This launch date would mark eight years since its original release in 2017, with speculation pointing towards a potential March debut, aligning with Nintendo's historical release pattern.
Moreover, there are reports of game developers actively working on titles specifically tailored for the Switch 2, scheduled for release in early 2025. This serves to strengthen the validity of the later launch date.
The rationale behind the delayed release of the Switch 2 is purportedly to provide developers with additional time to craft their games, ensuring a robust lineup upon the console's debut alongside the forthcoming next-generation Nintendo console.
Facing Stiff Competition
Nintendo is observed to be withholding its upcoming lineup of blockbuster game releases for the next-generation hardware, compounding the drawbacks of any potential delay.
While software constitutes the most profitable segment of the company's business, it appears improbable that new installments in its flagship franchises such as Legend of Zelda, Mario, and Splatoon will be released prior to the upgrade.
President Shuntaro Furukawa sidestepped inquiries regarding new hardware during a recent discussion following Nintendo's earnings report. Furukawa indicated that the company plans to unveil its strategies for the next fiscal year once the current one concludes.
He noted the considerable challenge of boosting sales for the existing console, given that 139 million units have already been sold.
The absence of a Switch 2 release for the holiday season means Nintendo will face stiff competition from newer and more technologically advanced consoles offered by Sony Group Corp. and Microsoft Corp.
However, despite the current circumstances, some investors view the potential decline in Nintendo's share price as an opportunity to capitalize on a downturn. Bernstein analyst Robin Zhu anticipates that an announcement regarding new hardware could materialize within the next six months.
Related Article: Nintendo Switch 2 is Coming by Early 2025 After 8 Years, Reports Claim
