Nintendo’s stock price fell by 8.8 per cent on Friday, marking the biggest daily fall the company has seen since February, 2019.
While profits are down year-on-year, Nintendo is in a “favourable cash position” and plans to buy back its own shares – which usually moves the market in a positive direction.
Bloomberg suggests that the market is correcting after a gaming boom during the lockdown artificially inflated the value of gaming stock.
Nintendo has sold 89 million Switch consoles, and enjoyed unprecedented sales of Animal Crossing: New Horizons last year.
“Games this quarter were not enough to patch the hole left by Animal Crossing,” Hideki Yasuda, analyst at Ace Research Institute, explained.
“July market data shows Switch and Switch Lite sales are falling. Nintendo will have another tough time ahead in the July-September quarter, which could be worse than the April-June period.”
