Analysts Don’t Trust the Nintendo Switch

Analysts Don't Trust the Nintendo Switch

We know that Nintendo stock dropped by 6.5 percent one day after the reveal of the Nintendo Switch, which is a bigger drop than the one that happened when Nintendo announced the Wii U in 2011. This is because analysts doubt the Switch’s ability to appeal to a wide audience. Plus, Nintendo’s been trying the whole “unique hardware” approach for a number of years and failing.

Dr. Serkan Toto, an analyst from Asia, sums up everyone’s feelings in the stock market quite nicely: “Is a portable/home console approach really that innovative in 2016? I am most concerned about the target group of the device: who else but die-hard Nintendo fans will buy the Switch?” 

Nintendo has to earn people’s trust back. They’re in a “guilty until proven innocent” right now, especially because of the Wii U’s performance. We need to see some killer apps on the Nintendo Switch aside from the hardware.