Nintendo Delay: Shares Slide as Next Generation Console Release Pushed Back to 2025
Shares of Nintendo, the Japanese gaming company, dropped in Tokyo trading after news broke that the release of their much-anticipated next-generation video game console will be delayed until 2025. According to sources, Nintendo informed some of its game-publishing partners that the successor to the popular Switch console, originally scheduled for late 2024, will now be released no earlier than March 2025.
This delay is expected to impact the release of major new games, as they might be postponed until the launch of the new console. The Switch, introduced in 2017, has been immensely successful for Nintendo, further increasing the anticipation for its successor.
Despite recent success, Nintendo saw a significant dip of approximately 7% in its shares during Tokyo trading due to the delay. It is worth noting that in the past year, the company's shares rallied by over 50% and reached an all-time high the previous week.
In its recent earnings report, Nintendo adjusted its sales expectations for the Switch console upward to 15.5 million units for the fiscal year ending in March. This update comes with a 6% decrease in year-over-year revenue. However, the company did not provide specific details regarding the timeline for the launch of the Switch's successor during its earnings report or call. Nintendo did mention that the preparation for new hardware requires significant time and planning.
Industry experts are now closely watching for any further updates from Nintendo as fans eagerly await the release of the next-generation console. The delay has stirred speculation about what new features and capabilities the new console will offer to the gaming community.
It remains to be seen how this delay will impact the overall strategy of Nintendo, as well as its future financial performance. Investors and gamers alike will be closely monitoring any additional developments regarding the release and features of the highly-anticipated console.
Analyst comment
Negative news. The delay of Nintendo’s next-generation console until 2025 may lead to a postponement in the release of major new games. As a result, Nintendo’s shares fell approximately 7% in Tokyo. However, the company has adjusted its sales expectations for the Switch console upward for the fiscal year. The market may experience some volatility in the short term due to the uncertainty surrounding the release of the new console.
