After the reveal of its highly anticipated Switch 2 console, Nintendo's (NTDOY, Financial) stock price saw a sharp decline. Japanese gaming giant shares plunged nearly 6%, falling to 8,940 yen in Tokyo trading. It was the company's biggest single daily decline in three months and came ahead of a 1.2% fall in the broader Nikkei 225 index.
However, the long-expected announcement of Switch 2 did nothing to rouse investor enthusiasm, even after a two-minute video that unveiled the new handheld. Offering little in the way of new information in the video, there's no word on key specifications, including pricing, game lineup or even the console's form factor; the unit will be a portable home hybrid, like its predecessor. A release date of 2025 has been promised by Nintendo, though they say that with April comes more revelations on pricing and additional features.
Its updated design includes a large screen, magnetically attached controllers, and modest changes to its basic look. On the new console, the company announced Mario Kart's new version and said it would be backwards compatible with the existing Switch library.
The Switch has been one of Nintendo's most successful consoles since 2017, with 150 million units sold, but the ageing device has started to cause demand to slow. The result has included a fall in earnings, forcing the game-maker to slash its annual profit and sales forecasts. With investors concerned that Switch 2 won't sufficiently energize the company's flagging fortunes, the mixed reaction to Switch 2's unveiling is no surprise.
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