The company needs its new console to be a game changer
After yoyo-ing following the success of the massively popular mobile game Pokemon Go - and the subsequent revelation that Nintendo's deal with the game's developers means that it will not boost the company's bottomline to the degree which had been expected - its shares are on the move again and in the wrong direction.
Following a big win with casual games with the release of the Nintendo Wii in 2006 the company has been losing ground to its competitors.
The success of Pokemon Go suggests that mobile gaming could be a niche where the company can re-establish itself as a market leader, but the Mario creators are not ready to leave the console world behind. Last week it unveiled the Nintendo switch, a hybrid tablet / gaming system device offering a unique mobile experience which it hopes will deliver a Wii style 'win' when it hits stores.
Switch will bridge the gap between Nintendo's mobile and stationary devices when it launches in March of next year - but investors' initial response has been anxious.
Last week pre-launch anticipation sparked a 3.3% surge in the company's shares - and the actual launch provoked a 6% drop and they have failed to recover.
The success or failure of the launch will depend on a lot of unknowns, including the titles that will be available when the device hits stores, as well as its battery life, and the all-important retail price.
Nintendo's share slump could be down to these key information gaps, rather than a lack of faith in Switch.