Nintendo’s stock is dropping following the release of the Nintendo Switch
Earlier last week, Nintendo officially unveiled the Nintendo Switch, their newest console that is supposed to compete with the Playstation 4 and the Xbox One. However, the early pricing for the Switch is set at $299, higher than many predicted. Shares in the companies stock are down 5.75% following the unveiling. Nintendo is already starting at a disadvantage following the flop of their last console, the WiiU, which only sold 13 million copies. The Nintendo Switch is not out until March but it is not available yet even on Amazon and the listing states that they do not know when it will be, however, BestBuy does have the products in stock in both blue and grey.
Analysts at Goldman Sachs were not impressed with the new device and opined in a recent report:
We think Nintendo’s past success has been driven by its ability to attract new gamers, but this time it does not appear to have taken specific steps to widen the gamer audience (teaser videos for the Switch heavily featured people in their 20s-30s). Nintendo says it has secured the console’s profitability. We think it is unlikely to be a loss-making device like the Wii U, but we do not see Switch emulating the enormous success of the Wii.