Nintendo Shares Drop After Showing ‘Switch’

Nintendo shares dropped on Friday after the company’s new gaming platform Switch failed to impress investors, according to Bloomberg. Shares in Tokyo fell as much as 5.2 percent, erasing the previous day’s rally that was triggered by news that the promotional video would be released.

The long-awaited device, featuring a tablet-like console that will let gamers play at home and on the go, was unveiled in a three-minute video released late Thursday. Company showed gamers using the new system to play in their living rooms, but also detaching a part of it to continue playing at an airport, in a car and at a barbecue.

Nintendo showed several titles from its flagship franchises, including Zelda, Super Mario, Mario Kart and a basketball game. The company reiterated in the video that the new system, originally dubbed NX, will be released in March. A price wasn’t disclosed.

The video focused squarely on the millennial demographic, young adults in their late 20s early 30s. This suggests a departure from Nintendo’s mission of making games for the whole family. The difference is particularly clear when compared with a video introducing the Wii more than a decade ago, which features grandparents playing along with kids.

How well the new hardware does may depend largely on the price, according to Macquarie Securities analyst David Gibson. In a research report last week, he estimated the device would retail for about $250 to compete with the PS4’s $299 price tag. Gibson wrote that the new hardware is likely to disappoint in terms of revolutionary features, but that a strong lineup of gaming titles will help to fuel demand at launch. He estimated Nintendo will sell 2.5 million units in its first month and an additional 10.6 million units by March 2018.

Nintendo said several game developers and publishers will make titles for the Switch, including Activision Blizzard Inc., Capcom Co., Square Enix Holdings Co., Bandai Namco Holdings Inc. and Electronic Arts Inc., among others. Nvidia Corp. said its graphics chips will power the new device. Nintendo’s Switch console could “revolutionize“ the way people play games because of its unique capabilities and design, Ubisoft Entertainment CEO Yves Guillemot said in an e-mailed statement.