On Friday, Nintendo's stock experienced a significant dip of up to seven percent following the release of a teaser video for its upcoming Switch 2 console. The brief preview showcased a device that is visibly larger than its predecessor but retained a similar design. Without revealing technical specifications or pricing details, Nintendo has piqued curiosity and speculation among gamers and analysts. The company plans to provide more insights through a live-streamed presentation on April 2 and subsequent real-world events in major cities. The stakes are high, especially considering the original Switch's remarkable success with over 146 million units sold since 2017.
The unveiling of the Switch 2 has been met with mixed reactions. Some industry observers noted that the flood of unofficial previews and rumors may have tempered excitement. Krysta Yang, from the Kit & Krysta Podcast, observed that the anticipation might have set expectations too high. Despite this, there is hope for additional exciting features and games to be revealed in the coming months. The new console will support exclusive Switch 2 games as well as backward compatibility with most Switch titles, although some limitations may apply.
Investors have expressed concerns about the delayed release timeline, which could impact sales figures. Bloomberg Intelligence analyst Nathan Naidu pointed out that the three-month delay compared to the original Switch's launch might hinder its ability to match the initial sales momentum. However, experts like Serkan Toto from Kantan Games believe that a refined version of the original Switch could still generate strong demand. Toto emphasized that gamers do not necessarily expect radical changes but rather improvements on what they already know and love.
While the gaming community awaits further details, Nintendo continues to diversify its offerings into theme parks and films. Yet, the Kyoto-based company remains heavily reliant on its Switch business, which accounts for approximately 91 percent of its revenue. This underscores the critical importance of the Switch 2's performance in maintaining Nintendo's market position. By the end of the trading day, Nintendo's shares had recovered slightly from their earlier losses, closing down by 4.84 percent.