Japanese video game giant Nintendo is facing turbulent times after rumors that the launch of the highly anticipated Switch 2, the successor to the popular hybrid console, has been delayed until early 2025. The news caused a significant drop in the company’s stock on the Tokyo Stock Exchange.
According to industry sources, the launch of the Switch 2, initially scheduled for late 2024, has been postponed to allow Nintendo to focus on strengthening the game library available for the console.
Following the release of the rumors, Nintendo’s shares on the Tokyo Stock Exchange plummeted 8.8% at the start of trading. Despite a slight recovery, the stock closed the day down 5.8%, its biggest daily decline since October 2021.
Reasons for the delay in the launch of the Nintendo Switch 2
The delay of the Switch 2 represents a setback for Nintendo, which was looking to maintain its pace of innovation and drive sales growth. The Switch, released in 2017, has been a huge success, selling over 120 million units.
There has been no official statement from Nintendo yet on the delay of the Switch 2. The company is expected to speak out soon to clarify the rumors and provide official information about the launch of the new console.
However, it is speculated that the delay may be related to the global shortage of semiconductor chips, which has affected the technology industry as a whole.
Gaming industry experts have expressed different views on the delay, with some analysts believing that it could be positive for Nintendo as it will allow the company to launch a more complete console with a robust game library.
On the other hand, other experts argue that the delay could hurt Nintendo as the company could lose ground to its competitors, such as Sony and Microsoft.
Impact on the market
The delay of the Switch 2 is a blow to Nintendo, which was counting on the new console to boost its sales. Nintendo is the leader in the portable console market, and the Switch 2 was expected to be a strong competitor to the PlayStation 5 and the Xbox Series X/S.
The company has already sold over 120 million units of the original Switch, and the Switch 2 was expected to be a huge success.
The future of the Switch 2 and Nintendo will depend on how the company handles this situation. The company needs to communicate transparently with its fans and investors, and present an innovative product with strong commercial appeal to ensure the success of the new console.
Stay tuned for the next chapters in this story to see how Nintendo responds to this challenge!