Nintendo shares drop following Switch 2 delay reports

Recently, Nintendo experienced a slight decline in its stock value from an all-time high last week after news surfaced that the company has postponed the release of its anticipated Switch 2 console to 2025. According to Eurogamer, internal plans for launching the new gaming system this year have been shelved, aiming for an early 2025 release to ensure a robust lineup of launch titles. This change was later confirmed by sources via Bloomberg, leading to a 5.8 percent drop in Nintendo's shares once the delay became public.

Despite this setback, Nintendo's shares are still performing well, hovering near the record peak of 8874 yen per share noted the previous week. This surge in share prices can be attributed to the growing excitement and speculation regarding the announcement of the Switch 2, which reached its peak last week amid rumors of an imminent unveiling. Around the same time, it was reported that Nintendo informed its publishing partners about the delay.

Analysts have mixed opinions on the delay's impact on Nintendo's financial outlook. Some express concerns over potential ugliness in the company's financial performance if both the console and key software titles are delayed. Conversely, others view the dip in share prices as an advantageous moment for potential investors to buy stock in anticipation of the Switch 2's eventual announcement. Furthermore, a recent industry report highlighted that numerous developers are actively working on games for the forthcoming Switch 2 console.