Shortly after its E3 Direct presentation, Nintendo received some bad news. Its stock value plummeted 6%. But why did it take such a steep fall? Daniel Ahmad, an analyst at Niko Partners tweeted out a list of concerns.
The main concerns are primarily-
– Switch sell through is lower than expected in H1 2018
– Nintendo Labo launch was muted and isn't selling Switch hardware
– Nintendo Switch Online service won't launch with a killer app
– Strong competition from other Console, PC, Mobile games
— Daniel Ahmad (@ZhugeEX) June 13, 2018
At E3, Nintendo’s President Reggie Fils-Aimé sat down and discussed the drop with Bloomberg. “Why the analysts reacted the way they did, who knows. But we know from a company perspective there’s a lot more up our sleeve and a lot more we have to show in the weeks and months ahead.,” said Fils-Aimé.
Fils-Aimé continued, “When we approach an event like E3, we show content that will launch over the next six to nine months and no more. It’s the pacing of news, the pacing of launches that will drive the business forward. So what I say is, don’t worry, we’re driving the business forward, we’re driving engagement on the platform, and that’s what’s most important”. In terms of games, 2018 has seen many big-name releases from Nintendo, which includes Hyrule Warriors: Definitive Edition and Fortnite.
When it comes to sales numbers, the Nintendo Labo sold over 90,000 units in Japan and almost 29,000 robot kits per Media Create and translated by Resetera. While the number is high, it only accounted for 30% of its initial shipment in Japan. As for the U.S. sales figures, they are non-existent at this point. Nintendo’s E3 presentation focused heavily on Super Smash Bros. Ultimate and the Pokémon: Let’s Go series.
Yoshi for Switch has been pushed back to 2019, and no news pertaining to Metroid Prime 4 was released. Should investors worry? What else do you think Nintendo has planned for the future? Comment below!