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Investors 'Switch' off Nintendo

After yoyo-ing following the success of the massively popular mobile game Pokemon Go - ...
Newstalk
Newstalk

15.00 24 Oct 2016


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Investors 'Switch&...

Investors 'Switch' off Nintendo

Newstalk
Newstalk

15.00 24 Oct 2016


Share this article


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.

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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.


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