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Nintendo shares tumble following Switch reveal

Nintendo shares dropped this morning as investors chewed over the three-minute reveal of the company's new console-handheld hybrid, Switch. 

Nintendo shares dropped this morning as investors chewed over the reveal of the company's new console-handheld hybrid, Switch. 

As reported by the Financial Times, Nintendo shares declined by over 6 percent on the Tokyo Stock Exchange -- reversing yesterday's 4 percent surge, which occurred just before the Switch was announced. 

"Nintendo has not come out with any surprises to redefine gaming, as it did with the announcement of the Wii console, but we think the Nintendo Switch addresses some of the issues that came up with the Wii U and looks formidable," commented Nomura Securities’ Junko Yamamura. 

As we found out yesterday in our Devs React feature, the response to the Switch has mostly been positive, with many of those we spoke to championing the device's versatility. 

There are, however, some unanswered questions concerning the Switch's functionality, launch line-up, and price point that seem to have some investors and developers worried. 

Speaking on Twitter yesterday, Japanese game industry expert Dr. Serkan Toto explained it's "critically important" for Nintendo to hit the right price point, and suggested that a launch price of $399 would "break the device's neck."

"Audience on console is extremely price sensitive. And of course they need to get other key factors right, like marketing, third-party developer support, ongoing software support, e.t.c.," continued Toto, giving his two cents on the challenges facing the Switch. 

"The big point, I think, is the need for a total killer feature. Nintendo's mantra is to provide games for the biggest audience possible. The casual gamers Nintendo masterfully captured with the Wii, is now on mobile. It will be very, very difficult to get them back.

"In my view, making the NX (Switch) a success will be a major challenge for Nintendo. They absolutely need to hit all the bases this time."

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