Nintendo Shares Plunge Nearly 6% on Switch 2 Delay Reports

On Tuesday, Nintendo shares fell by almost 6% after a report suggested a delay in the launch of the Switch 2, the next version of its flagship gaming console.

Last week, Bloomberg reported that the company had informed game publishers of a delay in the new version until early 2025. According to the sources, more games are being prepped for a Q1 2025 launch alongside the now-delayed console.

2024 Launch Dreams Dashed

The delay of the successor to the wildly popular Switch has put pressure on its seven-year-old Switch console to maintain sales after Nintendo previously scheduled the Nintendo Switch 2 for a 2024 pre-holiday release.

“New hardware is a key focus point of the market. Nintendo did not provide any particular updates during the results briefing,” JPMorgan said in a note following the company’s earnings earlier this month.

Nintendo’s stock has surged by over 50% in the last year. This is partly because investors have been anticipating the launch of a new console, which could boost the Japanese gaming giant.

Nintendo Switch

Released at the beginning of 2017, the Nintendo Switch is a hybrid video game console that has sold nearly 140 million units. This has positioned it as the third best-selling video game console of all time, trailing behind the PlayStation 2 and Nintendo DS.

The video gaming console has relied on blockbuster software releases to drive further sales of its console. This includes hits from the Mario and Zelda franchises. The release of the Super Mario Bros. Movie last year also helped juice consumer excitement for the company’s products.

“With Nintendo Switch entering its eighth year, expanding hardware sales volume further is difficult. However, hardware operations remained high during the year-end sales season, due partly to the acquisition of new users and plans to release many new titles in 2024. Nintendo aims to maintain momentum in the Nintendo Switch business,” JPMorgan said.

Despite Tuesday’s sell-off, Nintendo stock is still trading near multi-year highs, hitting levels not seen since late 2020.