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.
