Nintendo shares drop was seen nearly 6% after the report that the Switch 2 will be delayed until 2025 instead of later this year. Shares of Nintendo saw a drop on Monday after a report suggested the launch of the Switch 2, the next version of its flagship gaming console, would be delayed.
Japan’s Nikkei share average eased back from near a record high on Monday, pressured by chip-related shares in the wake of losses for U.S. peers on Friday. Nintendo’s shares in Japan closed at 5.84% lower, which was the biggest percentile decliner.
Nintendo switch 2 delayed
As per report Nintendo had told game publishers that the Switch 2 would be delayed until the early months of 2025, citing people with knowledge of the matter.
Nintendo was targeting a release of the console toward the end of this year, but told game makers it could slip into next year, the report said.
Nintendo’s new device
While Nintendo has not commented on plans for a successor device beyond saying that it is always working on new hardware and software, the Kyoto-based gaming firm is widely expected to be planning to launch a new device to succeed its aging Switch console.
As per the analysts, they expected a new Switch console to be launched in the second half of this year.
Nintendo’s shares has been on a tear in the last year, rising around 53%, partly because investors have been anticipating the launch of a new console, which could give the Japanese gaming giant a boost.
Maintaining the momentum
The current Switch is nearly seven years old, but Nintendo has managed to keep up momentum for the console thanks to the release of the “Super Mario Bros. Movie” as well as a new Zelda game which has boosted interest in the device.
“We want to maintain the momentum of the Switch business,” Nintendo President Shuntaro Furukawa told an earnings briefing at the time.
Nintendo Switch sales
This month, Nintendo raised the forecast for Switch sales in the current fiscal year ending March from 15 million units to 15.5 million units.
The company has remained tight-lipped about the Switch successor. A delay to the device and launch in early 2025 would miss the key holiday season in December.
Stock update
Shares of Nintendo sank 7.3% to 8,234.0 yen by 19:33 ET (00:33 GMT), while the broader Nikkei 225 index traded sideways.
