Nintendo's shares experienced a significant drop, closing 5.84% lower in Japan, following reports that the highly anticipated Switch 2 console's launch might be postponed until the early months of 2025. According to a Bloomberg report, sources familiar with the matter revealed that Nintendo had initially targeted a late 2023 release for the next iteration of its flagship gaming console but has since informed game publishers of a potential slip into the following year.
The delay comes as a disappointment to investors and fans who have been eagerly awaiting the new device. Nintendo's stock had surged approximately 53% over the past year, fueled by expectations of a new console launch which traditionally revitalizes interest in the brand and drives sales. The current Switch model, nearing its seventh year, has maintained its market momentum, supported by strategic content releases such as the "Super Mario Bros. Movie" and a new Zelda game. These factors contributed to Nintendo raising its Switch sales forecast for the current fiscal year ending in March from 15 million to 15.5 million units.
Nintendo's silence on the successor to the Switch has kept the gaming community and investors in suspense. The company's president, Shuntaro Furukawa, emphasized the importance of sustaining the Switch business's momentum during an earnings briefing earlier this month but did not provide specifics on future hardware developments.
The potential delay into 2025 means missing out on the critical holiday season in December, a peak sales period for gaming companies. This setback could impact Nintendo's financial performance and market position, especially as the Switch console ages and competitors continue to innovate. Despite the setback, Nintendo remains committed to developing new hardware and software to engage its global fanbase and sustain its position as a leader in the gaming industry.
