Feb 19th, 2024 – In a recent turn of events, shares of Nintendo took a significant hit, following reports suggesting a delay in the launch of the highly anticipated Switch 2, the next iteration of its flagship gaming console. The company’s stock in Japan closed 5.84% lower amidst growing concerns regarding the company’s future prospects.
According to a report by Bloomberg over the weekend, sources familiar with the matter revealed that Nintendo had informed game publishers about the potential delay of the Switch 2 until the early months of 2025; this news comes as a disappointment to both investors and gaming enthusiasts who were eagerly awaiting the release of the next-generation console.
Initially targeting a release toward the end of this year, Nintendo reportedly warned game makers that the launch could slip into the following year; despite attempts to reach out to Nintendo for comment, the company remained unavailable for immediate response.
Analysts had previously speculated on the launch of a new Switch console in the latter half of this year, contributing to the steady rise of Nintendo’s stock over the past year while investors had been banking on the release of a new console to provide a much-needed boost to the Japanese gaming giant.
The current Switch, nearing seven years since its launch, has managed to sustain momentum partly due to recent releases such as the highly anticipated “Super Mario Bros. Movie” and a new Zelda game, which have reignited interest in the device.
However, with Nintendo staying tight-lipped about the Switch successor and the possibility of a delayed launch in early 2025, concerns have escalated. In fact, missing the crucial holiday season in December could have significant implications for the company’s sales and revenue projections.
Despite Nintendo’s recent forecast adjustment for Switch sales in the current fiscal year, the uncertainty surrounding the launch of the Switch 2 has cast a shadow over the company’s short-term prospects: investors and industry watchers will undoubtedly keep a close eye on further developments as Nintendo navigates through this challenging period.
Author: Ilaria Savignoni