Was the announcement of the Nintendo Switch 2 enough? Not for the shareholders

Nintendo’s shares fell by up to 7% after the presentation of the Switch 2 trailer, which was revealed on Thursday and failed to impress both analysts and fans. The Japanese company did not provide technical specifications, such as screen resolution or processing power of the new device, which, although larger, features a design similar to the original Switch, which has sold more than 146 million units since its launch in 2017.

The Concern About Being Late: A Very Present Reality

The console’s launch is scheduled for 2025, which has raised concerns among analysts about a possible delay that could affect its initial sales. Some fear that the Switch 2 may not surpass the 15 million units sold by its predecessor in its first year. “There is a feeling that the Switch 2 might arrive too late,” warned Nathan Naidu, an analyst at Bloomberg Intelligence.

The presentation also included a new title from the Mario Kart series, which has sold more than 64 million copies of the last released game. However, Nintendo warned that not all titles from the original Switch will be compatible with the Switch 2, which could affect the transition for players.

Despite the lukewarm response to the teaser, some fans expressed optimism about the improvements in ergonomics and features of the new controller, which now incorporates an added button design and a USB-C port. “They have listened to the fans and improved what was needed,” commented a fan in Akihabara, Tokyo.

On the other hand, although Nintendo is diversifying its business towards theme parks and movies, 91% of its revenue still comes from the Switch business, highlighting the importance of the Switch 2 for its financial future. With the return of anticipation, the company will try to capitalize on the strong demand in its first year, although the challenge to surprise players persists.

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