Shares of Japanese video game giant Nintendo fell 7% on Friday on the Tokyo Stock Exchange, following a disappointing presentation of its new console, the Switch 2. In morning trading, the stock fell as much as 7,04%, before limiting its losses to 4,50%, trading at 9 yen. The presentation video released Thursday revealed few new features, with the console visually close to the original Switch, featuring a larger screen and a wider removable stand, while retaining the famous "joy-con" controllers.
Investor expectations were high after months of rumors and leaks about the console, which had contributed to a 12% increase in the stock price since mid-2024. However, the brief presentation left many observers and fans wanting more. The video did not reveal crucial technical details like the screen resolution or the power of the console, pointing to a more complete announcement scheduled for April 2.
The stakes are high for Nintendo, whose Switch launched in 2017 has been a massive success, with 146 million units sold by the end of September 2024. However, sales have slowed, impacting the company's financial results, which recorded a 60% drop in net profit in the first half of its staggered 2024 financial year. The Switch still represents 91% of the group's revenue, highlighting the importance of the Switch 2's success for Nintendo's future.
The games available will be crucial to the Switch 2's reception. The trailer seems to suggest the arrival of a new title in the Mario Kart series, a strong argument to boost sales. The previous installment, "Mario Kart 8", sold more than 64 million copies, testifying to the franchise's continued popularity.
Despite the lack of groundbreaking announcements, analysts remain confident about the initial demand for the Switch 2. Evolving the console without reinventing the concept could be enough for Nintendo to maintain player interest. However, the compatibility of older games with the new console remains partially uncertain, raising additional questions to be clarified in the coming months.
