The new Nintendo Direct hasn’t gone down well with investors, as the company’s share price dips over concerns around the Christmas line-up.
Nintendo’s latest Direct may have been massive for fans of role-playing games, thanks to Xenoblade Genesis and Kingdom Hearts 4, but it wasn’t exactly a home run for the company’s major first party franchises.
The big reveal (which had leaked ahead of the Direct) was the remake of The Legend Of Zelda: Ocarina Of Time. While it looks set to be this year’s big Christmas game for the Switch 2, we barely saw anything from it aside from a brief shot of Young Link on a bed.
It wasn’t exactly a lot to get enthused about, especially in the second year of a new console, and that same sentiment appears to have been reflected by the stock market.
Following the Direct on Wednesday, June 9, Nintendo’s shares fell by 7.5%. As reported by Reuters, the company’s shares have dropped by around a third from the start of this year, with a major dip happening following the Switch 2 price hike announcement in May.
According to Jefferies analyst Atul Goyal, this latest drop is due to the lack of a mainline 3D Mario game for the Christmas season, or anything of a similar scale. ‘Year 2 now enters the holiday window without a franchise title of comparable pull,’ Goyal said.
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It’s a valid point, as while Zelda: Ocarina Of Time will be a big draw for many, it is still a remake of a Nintendo 64 game from 1998 – that won’t mean much to younger gamers.
In comparison, the first year of the original Switch had The Legend Of Zelda: Breath Of The Wild, Splatoon 2, Mario Kart 8 Deluxe, and Super Mario Odyssey, so it’s hard not to wonder where the big-hitters are for the Switch 2.
However, there are other factors to consider with the tumbling share price. There’s currently a big AI surge on the US stock market, which is having a negative knock-on effect on other companies. Additionally, Nintendo shares have a habit of erratically plunging following big presentations, as we saw after the Switch 2 reveal last year.
Even if this is just a brief downward turn though, it’s perhaps a reflection of the average person’s sentiment towards the Switch 2. Aside from Mario Kart World and Donkey Kong Bananza, Nintendo has largely relied on its B-tier franchises to keep the system afloat, between Star Fox, Kirby Air Riders, and Yoshi And The Mysterious Book.
Of course, this could change in 2027, especially with the promise of Pokémon Winds and Waves, but without the dangling carrot of a new 3D Mario, Animal Crossing, or sequel to The Legend Of Zelda: Tears Of The Kingdom, it’s easy to see why investors might not be optimistic about the Switch 2’s prospects over Christmas.
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