Something odd is happening with Nintendo stock in the last few months. After peaking around March, Nintendo shares have slowly been sliding downward, and more recently, the pace of decline has been accelerating with drops of as much as 5% in a single day. In total, shares are down about 34% since March.
https://www.forbes.com/sites/insertcoin/2018/07/05/why-are-investors-panicking-about-the-nintendo-switch/#59590bf228e7
Nintendo stocks are in a tailspin this year. Investors may have been too bullish on what once seemed like a sure thing when Switch debuted. But the dominoes started falling one at a time, and now investors are skittish. The E3 showing looked to set off some red flags since more AAA titles were expected. Let's look at some factors of what could be wrong.
"Just another Nintendo console?"
The Switch is not the Wii. The Wii was a zeitgeist for the market that Nintendo may not be able to capture again. Once the novelty wore off on that, the bubble burst hard. When the Wii U rolled around, the casual market saw no need to upgrade, or invest in another go round when Wiis were collecting dust in people's closets.
Are the "Nintendo console curse" woes starting to catch up to it? Overpriced ports, poor AAA third party support, relying on the core to keep above water etc.? Not to mention LABO giving them a HUGE black eye. It was likely the worst risk Nintendo had taken in ages. Or will things improve? Switch seemed to benefit from a first year of games that were likely supposed to be tail-end Wii U projects that were held over for the new system, making sales kind of frontloaded.
Other things that might be making investors nervous is Nintendo might be overpromising on the units they plan to sell. And Nintendo's already discussing a 3DS successor when this device was suppose to streamline the two markets into one cohesive ecosystem. A 3DS follow-up would kill the Switch. This wouldn't be a wise idea.
Maybe things will look up once Pokemon hits, but this is quite the alarming drop. The system is still selling well enough, but are the prospects still high as it was hoped to be?
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