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.
The open development environment is considered one of the strengths of Switch and third-party developers are working on around 80 titles, but we think it is too early to be optimistic. FIFA and Call of Duty titles were announced at the Wii U launch, but sales growth did not materialize and third-party developers seem to prefer the larger install base of PS4 and Xbox One.
UBS analysts mostly agree stating:
Our first impression is that there are not very many titles that users could not enjoy if there was no Switch. A new IP, ARMS (an instinctive battle-sport game that uses the Joy-Con controller; due out in the spring) has been unveiled, but when we had a go on it we thought it was simply an extension of a Wii game, and we think it is unlikely to drive strong demand for the Switch (we felt ‘Snippers‘ was newer). We expect sales volumes to rise gradually alongside releases of new versions of Nintendo’s own major, existing IP titles (‘Mario Kart 8DX’ (28 April), ‘Super Mario Odyssey’ (this spring), and ‘Splatoon 2’ (this summer)).
On a related note look below and maybe it is not so bad to be a gamer?
8 surprising benefits of playing video games
Video games boost your memory. They could improve your vision. They reduce stress and depression. They can help stroke victims more fully recover. Video games may slow the aging process. They inspire interest in history and culture. Video games teach problem-solving skills and creativity. They may help people overcome dyslexia.
So which gaming system are you going to buy? Comment below.