Nintendo Shares Drop in Japan as Reports Suggest Switch Successor Release in 2025
Nintendo, the renowned Japanese gaming company, has experienced a decline in its shares following reports that the successor to its popular console, the Switch, will likely be released in the first quarter of 2025. The news, initially reported by Brazilian journalist Pedro Henrique Lutti Lippe and later confirmed by VGC’s own sources, has caused a stir among investors and gamers alike.
Previously, it was expected that the next Nintendo console would be launched in late 2024. However, according to recent reports, the company has informed publishers that the release date has been pushed back to Q1 2025. This unexpected delay has had a significant impact on Nintendo’s stock prices, causing them to drop on the Tokyo Stock Exchange. At one point, the shares plummeted by as much as 8.8%, eventually settling on an overall loss in value of 5.8%.
The drop in share prices is a cause for concern among investors, as it raises questions about the company’s future performance. Nintendo’s stock had reached an all-time high of ¥8,874 ($59) last week, fueled by the anticipation surrounding the release of the Switch’s successor. However, as of now, the stock has fallen to ¥8,410 ($56), indicating a slip in value. Analyst Mio Kato from LightStream Research suggests that this decline may continue if the delay in releasing the next console results in a weak software lineup for this year.
“There seem to be a lot of new buyers of Nintendo who may be less familiar with the name and more impatient for the company to put up visible numbers,” Kato said. “Nintendo’s numbers for the March 2025 fiscal year could start to look rather ugly if key software is delayed at the same time that the current hardware has aged so much.”
The lack of confirmed first-party games for the Switch this year has added to the concerns surrounding Nintendo’s future. However, Bernstein analyst Robin Zhu advises investors to remain calm and sees the dip in share prices as an opportunity to buy shares in the company. Zhu believes that Nintendo’s announcement of its next hardware will still happen at some point, which could potentially boost the stock prices again.
According to sources cited by VGC, third-party game companies have been informed about the internal delay in Nintendo’s next-gen launch timing. The delay is reportedly aimed at allowing Nintendo to develop stronger first-party software for the upcoming console. This strategy mirrors the timeline of the Switch, which was announced in October 2016 and released in March 2017.
While the news of the delay may disappoint eager gamers and investors, it also presents an opportunity for Nintendo to refine its offerings and ensure a strong lineup of games upon the release of its next console. As fans eagerly await further updates from the company, it remains to be seen how this delay will ultimately impact Nintendo’s position in the gaming industry.