Investors have started selling off shares in Nintendo after its reveal of their next console the Nintendo Switch which some investors found “disappointing.” Shares in Nintendo dropped nearly eight percent during Friday before rebounding to 25,185 yen, down 6.54 percent.
Amir Anvarzadeh, Singapore-based head of Japanese equity sales at BGC Partners said
It’s a disappointing console. It doesn’t enhance the gaming experience when you have a smartphone in your pocket.
Nomura Securities analyst Junko Yamamura was slightly more positive, calling the Nintendo Switch “formidable.” However, she did state that the new device would not redefine gaming like the Wii did.
The concept for the product is in line with our expectation that it will be a hybrid of a stationary console and a handheld device. Nintendo has not come out with any surprises to redefine gaming… but we think the Nintendo Switch addresses some of the issues that came up with the Wii U and looks formidable.
Nintendo fans had a different outlook after seeing the 3-minute reveal trailer ranging from excitement to optimism depending on the game library the machine will offer.
A sticking point for most on both gaming and investor side is the lack of information, especially that around what the Switch will cost when it releases. Getting the pricing and the games line up just right is key for Nintendo to make sure the release is widely accepted.
The Nintendo Switch is due to release in March 2017.