Nintendo loses $1 billion in market value after delay of game launch
The video game corporation's stock is dropping after the postponement of a new game release.
Nintendo share price dropped after a delay of the launch of a popular game. The postponement caused the company to lose $1 billion in market value. Investors were upset that the video game company’s Animal Crossing: New Horizons game won't be released until 2020.
Animal Crossing launch delay details
Animal Crossing is a life simulation game in which humans interact with animals. The game was supposed to launch its latest version in 2019, but has been pushed back until next year. Doug Bowser, president of Nintendo of America, said the Animal Crossing: New Horizons release was delayed to give the game’s developers a proper work-life balance to avoid burnout.
‘For us [Nintendo], one of our key tenets is that we bring smiles to people’s faces, and we talk about that all the time. It’s our vision. Or our mission, I should say. For us, that applies to our own employees. We need to make sure that our employees have good work-life balance,’ said Bowser.
‘We will not bring a game to market before it’s ready. We just talked about one example [with ‘Animal Crossing’]. It’s really important that we have that balance in our world. It’s actually something we’re proud of,’ added Bowser.
Is the US-China tariff war affecting Nintendo?
Gamers and investors were also disappointed by a delay in the debut of a new low-cost version of the Nintendo Switch gaming console. There are reports that the new Switch models will be made in southeast Asia instead of China to avoid US tariffs on Chinese imports. Bowser wouldn’t comment on when the new Switch console would be available.
'We’re not talking any more about new platforms or extensions of Nintendo Switch. We’re just entering into the third year of Nintendo Switch with strong momentum, and that’s the focus here,’ said Bowser.
Investors will monitor Nintendo stock to see if the video game giant can rebound from these setbacks.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Act on share opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
