The stock price of Nintendo Co., Ltd (TYO: 7974) plummeted 5.75% to ¥23,750 in Japan on Friday after the company announced the launching of Nintendo Switch worldwide on March 3.
The Japanese game console and software developer is selling the Nintendo Switch for $299.99 in the United States, £278.99 in the United Kingdom, and ¥29,980 in Japan, higher than the price expected (between $250 and $280) by analysts and investors.
Take note that the current retail price of the PlayStation 4 by Sony Corp (ADR) (NYSE: SNE) is $260 and the Xbox One by Microsoft Corporation (NASDAQ: MSFT) is $240 in the United States.
Fumio Matsumoto, the senior fund manager at Dalton Capital in Japan, told Reuters, “Pricing at around 25,000 yen would have been received well but the pricing is on the high side.”
Matsumoto added that Nintendo Switch’s higher pricing is “understandable to some extent” because it can be used as a home console and hand-held device. However, he emphasized that game console does not have enough software title to justify the $299.00 price.
Nintendo Switch specs and features
The Nintendo Switch is a hybrid, tablet-sized video game system with a set of Joy-Con wireless controllers. Players can connect the system to the television and play games at home. They can also use it as an on-the-go, hand-held game device as it is equipped with a 6.2-inch touch screen.
The game console’s Joy-Con controllers are have motion control, infrared and other built-in features that make it more interactive. For example, the left Joy-Con has a capture button that allows players take screenshots of a game and share friends on social media. Players can use both controllers or give one to a friend to play a game.
The battery life of the Nintendo Switch lasts six hours but varies depending on the software and usage condition. The game console is available in two stylish version—one set with gray Joy-Con controller and the other set has one neon blue and one neon red Joy-Con.
Nintendo is hoping that its new game console would be successful and help revive its financial performance. Given the decline in its stock price, it appears that the company failed to convince investors that the specs and features of Nintendo Switch are not enough to regain players and make it a big money maker.
The Japanese game console and software developer expected to sell two million Nintendo Switch units in the first quarter.
Nintendo Switch controller set-up is complex
Kenji Ono, an independent gaming journalist, commented that Nintendo Switch has a” complicated controller setup,” which means game developers need to create compatible titles. He believes it is a “problem.”
More than 50 game software developers are creating 80 titles for Nintendo Switch, according to the company. Eight of the titles including The Legend of Zelda: Breath of the Wild will be available at the time of its launching.