Nintendo has just recently announced their brand new console called Nintendo Switch. However, it was reported that Nintendo's stock value dropped following the reveal. Several gaming industry enthusiasts shared their comments on why Nintendo's stock price dropped while adding that Nintendo Switch might struggle to compete in the current market.
According to the reports from Attack of the Fanboy, gamers and investors experienced a high level of hype when Nintendo was preparing to reveal the Nintendo Switch. As a result, Nintendo's market value boosts up to a skyrocketing $1 billion. However, after the official reveal of the new console, the gaming giant's stocks suddenly trend to the negative.
Based on the Tokyo Stocks Exchange's latest data, Nintendo's stocks was down 6.5 percent. Unfortunately, this 6.5 percent drop covers the recently added $1 billion market value following the new console's release next year. That means the recent drop instantly erases the $1 billion stock value.
Dr. Serkan Toto, a known Analyst shared his thoughts with Tokyo Stocks Exchange saying that the home-based/portable console approach does not appear to be appealing to the market in terms of innovation. He also adds that Nintendo Switch lacks a killer feature that will revise the trend considering that the growth of mobile gaming sectors is 2-3 times bigger than consoles.
Toto made a good point regarding Nintendo Switch's long-term performance. Nintendo Switch might have some features that will push the gaming on the go into a deeper experience, however, the new console may still struggle to bring a unique feel that gamers are looking for.
Fortunately, Nintendo has enough time to solve queries with the console's release this upcoming March 2017. Additionally, analysts suggest that Nintendo should keep the price below $300. This could be reasonable enough for the Switch to bring impact to most of the gamers.
On the other hand, Game Rant mentions that Nintendo Switch is targeting a younger demographic. Which means the gaming giant is probably trying to recapture a market that is quickly taking their gaming on the go. Having a portable console that can do the same thing might be an effective device for the younger generations.
