Nintendo shares fall after Switch 2 reveal disappoints investors

Nintendo’s highly anticipated Switch 2 console reveal sent the company’s shares tumbling by as much as 7% on Friday, despite showcasing enhanced features and a new Mario Kart title in its first teaser video.

The Japanese gaming giant’s brief preview Thursday displayed a larger device that maintains the hybrid nature of its predecessor, featuring redesigned Joy-Con controllers that reportedly attach magnetically rather than sliding into place.

The announcement, however, left key details like processing power, screen resolution, and pricing unaddressed until a planned April 2 livestream event.

“There was really no pressure from gamers for Nintendo to reinvent the wheel,” said Serkan Toto from Tokyo consultancy Kantan Games.

“Gamers are surely not blown away by the reveal like they were when the original Switch was shown for the first time, but I think year-one demand at least will be very high.”

Nintendo Switch 2 disappoints investors

The market reaction reflects investor concerns about the console’s 2025 release timeline. Bloomberg Intelligence technology analyst Nathan Naidu warned that the delayed launch “might fail to top the 15 million units the Switch achieved in its first full year,” as it trails its predecessor’s release schedule by at least three months.

The original Switch has sold more than 146 million units since its 2017 launch, ranking as the world’s third-bestselling console behind Sony’s PlayStation 2 and Nintendo’s DS.

The company’s shares had gained more than 12% in the past six months before Friday’s decline, which ended with a 4.3% drop in Tokyo trading.

Despite market skepticism, gaming enthusiasts in Tokyo’s Akihabara district expressed optimism about the new console. “They’ve obviously listened to fans and what has to be improved,” said Camden Voysey, 21, a tourist from Australia.

The announcement carries particular weight for Nintendo, which derives approximately 91% of its revenue from its Switch business, according to Darang Candra of industry research firm Niko Partners.

The company noted that while the Switch 2 will run previous Switch games, “certain Nintendo Switch games may not be supported on or fully compatible,” with more details forthcoming.