[Click eStock] "Nintendo Delays Switch 2 Launch... Continued Poor Performance Expected"

On the 8th, Korea Investment & Securities forecasted that Nintendo, listed in Japan, would continue to experience poor performance this year because the release schedule of Switch 2 has been postponed to the first quarter of next year.

Jung Ho-yoon, a researcher at Korea Investment & Securities, said, "There is no need to rush until the release schedule of Switch 2 is finalized."

Nintendo Switch

Nintendo's sales in the first quarter of this year were 277.1 billion yen, down 9.6% compared to the same period last year, and operating profit was 64.5 billion yen, down 31.2%, falling short of market expectations. Researcher Jung explained, "During this period, sales of the Switch platform were 246 billion yen, down 11.7%, continuing the downward trend. Software sales volume was 35.7 million units, down 14.6%. Due to the aging of the Switch, sales volume has been steadily declining since 2022."

The performance rebound is expected to come with Switch 2. Researcher Jung said, "This quarter's results confirmed that the growth phase based on the Switch has passed. Since the second half of last year, numerous articles related to the release of Nintendo Switch 2 have emerged, causing a temporary decrease in demand for Switch hardware and software."

He added, "Despite the poor performance, Nintendo's stock price has steadily risen since the beginning of the year due to expectations for the Switch 2 release. However, after the news of the delay was announced, the stock price fell 13.3% from its peak. The valuation has also increased due to the rising expectations. We believe there is no need to rush until the schedule is finalized."