Nintendo announced the Nintendo Switch today at an event in Japan. Sporting a $299.99 price and a March 3 release date, along with a bevy of games, there seemed to be just enough to make Nintendo fans and newcomers bother with its latest console. Shareholders however, thought differently.
Nintendo stock is down by 1,465 points or 5.81 percent on the Tokyo Stock Exchange after crucial information on the console was announced.
This should come as no surprise. Prior to the Nintendo Switch event, several analysts and industry experts claimed that a $300 price would kill the console.
"A long-in-the-works revamp to the company's consoles -- the NX, with reveal coming next week -- is liable to come at a price that will result in a "major" disappointment for volume sales, the firm Macquarie says," according to a post on investor website Seeking Alpha. "Speculation is putting the price of the new console between $300 and $350, in line with competing consoles, vs. the Wii's former discount to rival boxes from Sony and Microsoft."
During the launch of Super Mario Run shareholders pressed the sell button on Nintendo, which tumbled 4.89 percent to JPY 26,225 ($222) by the break - wiping almost $2 billion (roughly Rs. 13,561 crores) off the firm's market capitalisation.
We discuss everything we know about the Nintendo Switch on Transition, our new podcast on gaming and pop culture. You can subscribe to it via RSS or just listen to this episode by hitting the play button below.