Nintendo Share Value Drops by 6.5 Percent Following Switch Reveal

Lack of killer features may hamper Nintendo’s newest console.

Posted By | On 21st, Oct. 2016 Under News


nintendo-switch

Nintendo enjoyed a surge in share value prior to the reveal of the Switch but once the device was finally showcased, share values dropped significantly. The company’s shares were down by 6.5 percent when the Tokyo Stock Exchange closed for the day.

Analyst Dr. Serkan Toto noted that the Switch’s inability to reach a large audience could have contributed to the drop in share value. Speaking to Games Industry International, Toto said, “Sorry, but is a portable/home console approach really that innovative in 2016? I am most concerned about the target group of the device: who else but die-hard Nintendo fans will buy the Switch?

“The Switch lacks a killer feature, and I think it will be very difficult for Nintendo to win back the casual gamers that are mostly on mobile now. In Japan, for example, the mobile gaming sector is already 2-3 times bigger than consoles. Even the PS4 struggles over here. It’s going to be a huge challenge to try to reverse that trend.”

Toto also believes that mobile titles like Nintendo’s Super Mario Run on iOS could have a hard time drawing more consumers to consoles. “I find it very difficult to picture a scenario where a critical number of mobile, free-to-play users converts to console and buy hard- and software for several hundred dollars upfront. Different markets, very difficult to bridge.”

The Nintendo Switch is out in March 2017. What are your thoughts on its potential? Let us know below.


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  • Alistein

    I guess all the excitement didn’t help.

  • Sliquid

    The console is creative to say the least but the mobile aspects do not interest me in the least. I’ve never really cared about mobile games much either. I’ve always loved Nintendo but the last system I had personally was an N64. I bought the kids a Wii and just couldn’t stand it but I realized Nintendo wasn’t trying to grow up with me they have always been geared towards the younger audience which is fine.

    I know a lot of the newer generation loves the idea of being portable and mobile, but some of us older gen just don’t really care for it, and I think thats what the breaking point with this system is. I also see mostly the die hard Nintendo fans purchasing this and I hope it does well but its not going to compete with Sony and Microsoft–not yet anyway. (i’m no expert and could be entirely wrong but just a personal guess)

    I actually see myself maybe getting one in the future when its super cheap but no time soon thats for sure. I personally dont like the pull out pad as its just too big and awkward but I’m not a tablet gamer either so its just not my preference. I hope it does well and if not learns from the mistakes and improves upon them b/c the unit is pretty innovative but not ground-breaking. We need a fresh change of things from the same old same old we get with the PS and Xbox—good luck Nintendo I’m still rooting for ya

    ps—hope it has good battery life

    • Alistein

      I also hope it does well but I have to disagree with you on this being creative. It was recently revealed that the switch might have been ripped from the Morphus X300 http://kotaku.com/china-already-has-a-handheld-like-the-nintendo-switch-1788056087

    • Sliquid

      oh wow, didnt know this..thanks for the info

    • Alistein

      You’re welcome, I find it funny Nintendo were keeping the NX or Switch a secret for fear of copycats while they were doing thesame considering the Morphus X300 was shown and reviewed last year.

  • Nintengods

    Investors buy on hype, sell on news. This is normal and happens to Apple all the time.

    Sonycuck and xcuck losers tryiing to downplay the return of the King. Keep trying.


 

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