Nintendo Investors Reacted Poorly To The Nintendo Switch; But Why?

By   /   Oct 29, 2016
Nintendo investors

The night before Nintendo revealed the Nintendo Switch, the company’s market value jumped up nearly a billion dollars, an almost unheard-of increase that mirrored the market increase that Nintendo got after the release of Pokemon Go over the summer, which shot its stocks way up. Nintendo investors, however, then made the company’s shares drop over 7 percent after the reveal.

See Also: Nintendo Switch Raises Nintendo Market Value By A Billion Dollars

This confused Nintendo president Tatsumi Kimishima, who thought that Nintendo’s shareholders would have been excited at the prospect of a new console that could get the company more money. The reveal of the Switch came after eight years of declining revenue, even in the face of new hotly-anticipated and successful games like the new Super Smash Bros, Mario Kart 8, and a variety of other games from popular Nintendo properties.

However, considering how Nintendo investors have demonstrated multiple times that they’re not familiar with video games at all (fair enough considering they invested in Nintendo to make money), it’s not that surprising. However, Kimishima has taken a look at the business from a gamer’s standpoint, and aims to help increase the company’s revenue by increasing the amount of people that play games.

The Nintendo Switch is basically a new and (hopefully) improved version of the Wii U, a return to conventional console gaming but with the ability to take a portable version of the system on the go. Considering the good reaction to its trailer from gamers, it’s likely that it will be successful enough (Kimishima personally thinks it will sell two million copies by the end of 2017) that the Nintendo investors will see that their fears were completely unfounded.

Considering the promise that the Switch has, not only having a lot of upcoming good-looking Nintendo games but also containing a large number of third-party games from other developers and companies, hopefully Kimishima will turn out to be right and the Switch will be just as successful as the Wii was.

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