By Sagar V. Mankar According to recent reports from Bloomberg and Insider Gaming, shares of Nintendo stock dropped as much as 8.8% following rumors that the highly anticipated Switch 2 console has been delayed.
Let’s break down the latest news and speculation around Nintendo’s next gaming system.
What Are the Switch 2 Delay Rumors?
The main source of the delay chatter comes from a report by Brazilian journalist Pedro Henrique Lutti Lippe.
Citing multiple unnamed sources, Lippe claimed the Switch successor will not arrive until Q1 2025 at the earliest.
This contradicted previous expectations of a 2024 launch.
Nintendo has not officially confirmed any delay or even provided a release window for the new hardware.
The company remains tight-lipped on details surrounding its next console for now.
Why Did Nintendo’s Stock Drop?
As Lippe’s report spread across gaming outlets and forums, anticipation built that Nintendo would share Switch 2 news soon to clarify the situation.
When no announcement came, disappointment likely set in among investors who were banking on a 2024 launch.
This sudden shift in expectations appears to be the primary driver behind Nintendo’s stock dipping nearly 9% last week.
Investors may have sold shares in response to the prospect of longer wait times before Nintendo’s next major revenue generator hits stores.
What’s the Outlook for Switch 2’s Release?
Despite the stockdrop, financial analysts say Nintendo’s overall position remains quite strong.
The original Switch has now sold an incredible 139 million units worldwide as of early 2024, providing a huge existing user base.
Nintendo will undoubtedly provide an update on Switch 2 development plans during their next financial briefing in May 2024.
This may help settle the swirling rumors and reset shareholder expectations appropriately.
Recent reports suggest Nintendo is investigating backwards compatibility and even multiple Switch 2 models at different price points.
If the extra development time is used to robustly address these priorities, it could pay dividends for the new console’s launch.