Nintendo to launch Change 2 this 12 months; shares slide 4%

By Sam Nussey

TOKYO (Reuters) -Japan’s Nintendo mentioned on Thursday it is going to launch the Change (NYSE:SWCH) 2 console this 12 months, unveiling a tool that appeared to carefully observe the design of its common predecessor.

The Kyoto-based gaming firm didn’t launch pricing for the brand new system and mentioned it might present extra particulars at a Nintendo Direct occasion on April 2.

Shoppers and traders have been ready for particulars of the brand new console, which follows the hit hybrid home-portable Change.

Nintendo had mentioned it might make an announcement a few successor system through the monetary 12 months ending March 2025.

“The reveal didn’t have the punch of the unique Change,” mentioned Serkan Toto, founding father of the Kantan Video games consultancy.

“What we noticed is extra like a ‘Change Professional’ – an upgraded model that’s greater – than a Change 2,” he mentioned, including the launch will seemingly be after June.

Nintendo’s shares closed down 4% on Friday. Particulars of the system and announcement timing had extensively circulated on-line, with the shares closing at a excessive on Thursday.

The Change reworked Nintendo’s fortunes following the poor efficiency of the Wii U console, and has offered greater than 145 million models.

Nintendo has prolonged the lifecycle of the Change, which launched in 2017, with {hardware} refreshes and hit video games from franchises similar to “Tremendous Mario” and “The Legend of Zelda”.

The corporate has mentioned it expects to promote 12.5 million models of the ageing Change console within the monetary 12 months ending March.

“The Change 2 is poised to reinvigorate {hardware} gross sales,” Jefferies analyst Atul (NS:ATLP) Goyal wrote in a consumer be aware forward of the announcement.

“Even when Nintendo builds up capability to fabricate 15m Change 2 for the 12 months, the demand is prone to outstrip provide for a number of months/quarters,” he added.

The corporate mentioned that current Change software program will probably be usable on the brand new system though some video games will not be absolutely suitable.

The Change is the corporate’s second-best vendor, topped solely by the hand-held Nintendo DS which offered 154 million models in whole.

Nintendo has opened shops and its roster of characters function in theme parks and movie however the firm stays closely depending on its console enterprise.

Together with PlayStation maker Sony (NYSE:SONY), Japanese firms stay main console suppliers, at the same time as know-how similar to cellular and cloud presents alternate options for gaming.