Nintendo Didn’t Impress Investors With Switch Announcement
Stock prices have nose dived.
While there were plenty of people who were quite excited about the Nintendo Switch reveal, it appears the company’s investors are not among those all that excited. There are a couple of reasons why investors may not be all that convinced the newest business approach is one that will spell success.
On Friday, the company’s shares fell about 5.8 percent. On Monday, the company saw yet another drop of about two percent. All of this appears to be despite the fact that preorders have been very healthy.
It appears that in order to get investors back on board, the company is going to have to sell about two million units. Analyst Hideki Yasuda laid out what the company needs to do. “The pricing and game titles were as expected; the stock was bought up on hopes and sold on the fact,” said Ace Research Institute analyst Hideki Yasuda. “The first two weeks of sales will be critical for Nintendo, and they will have to sell the 2 million units they forecast for the quarter. The Switch’s success will be determined at the start.”