Nintendo Stock Tumbles in Biggest Decline in Months

NIntendo’s stocks dropped by as much as 8.8% after game developers were informed that the company was delaying the launch of its successor to the Switch console until early next year.

Bloomberg News reported that the Kyoto-based company informed its game publishing partners that the next generation of video game consoles would be delayed until the first few months of 2025, compared to the fourth quarter of this year.

Shareholders were advised not to expect the unannounced console until at least March 2025. While Nintendo’s stocks saw their biggest drop in a day since October 2021, they later recovered to a 5.8% decline.

President Shuntaro Furukawa avoided questions about new devices this month after announcing Nintendo’s earnings, stating that the company would reveal its plans for the next fiscal year after the current fiscal year ends.

He also noted that selling more of the current console would be difficult, as 139 million units have already been sold, and without the Switch 2 for the holiday season, Nintendo will be competing with newer and more powerful consoles from Sony and Microsoft.

Nevertheless, some investors may see further drops in Nintendo’s stock price as a buying opportunity during the decline, according to analyst Bernstein Robin Cho, who expects the new devices to be announced in the next six months.