San Francisco Frontiers - Nintendo shares tumble as Switch 2 teaser disappoints

The brief clip released Thursday showed a gadget that is bigger but broadly similar in appearance to the original hybrid Switch, which can be handheld or connected to a television.

Nintendo gave no technical specifications such as screen resolution or processing power for the sleek-looking machine, which will be on sale -- for an undisclosed price -- at some point in 2025.

This kept gamers and analysts guessing until a live-streamed presentation on April 2 and subsequent real-world "experience" events in the following days in major cities worldwide.

The stakes are high for the eagerly awaited announcement, with gaming websites in recent weeks reporting on "industry whispers" and glimpses of purported prototypes.

The first Switch has sold more than 146 million units since its launch in 2017, making it the world's third-bestselling console after Sony's PlayStation 2 and Nintendo's DS.

Krysta Yang of the Kit & Krysta Podcast said in a YouTube reaction video that the flood of unofficial previews and rumours may have spoiled the surprise.

"I guess because of all the information that was already out there, maybe people were just like, 'this is what I expected'," she said.

"I'm sure there's going to be more details that are fun and exciting, hopefully, and more games obviously, that we'll see in the coming months."

Nintendo's share price had also risen strongly in recent months, gaining more than 12 percent in the last half-year.

- Investor concerns -

The Switch 2's screen is larger, as are the overhauled detachable "Joy-Con" controllers that snap on -- possibly with magnets -- rather than sliding into position as before.

Eagle-eyed gaming websites noted what they said appeared to mouse-like functionality for the Joy-Con, a mysterious extra button and a new USB-C port.

Key will be the games, and Nintendo's two-minute trailer also showed off a new version of the long-running Mario Kart series both on the new console's built-in screen and on a TV.

The previous instalment of the game, "Mario Kart 8", has sold more than 64 million copies.

The company said the new machine "plays Nintendo Switch 2 exclusive games, as well as both physical and digital Nintendo Switch games" -- which would fulfil a November promise on backwards compatibility.

But it added that "certain Nintendo Switch games may not be supported on or fully compatible with Nintendo Switch 2", promising further details to come.

Bloomberg Intelligence technology analyst Nathan Naidu said while the new Mario Kart game was a "bright spot", investors could be concerned about the release timeline.

"As Switch 2's release will be at least three months behind its predecessor, it might fail to top the 15 million units the Switch achieved in its first full year," he said.

With sales of the original Switch falling, Nintendo had promised to unveil the new console by the end of March.

- No pressure -

Serkan Toto from Tokyo firm Kantan Games said that making the Switch 2 "just a bigger and better version of the original console... might be all that Nintendo needs".

"There was really no pressure from gamers for Nintendo to reinvent the wheel," Toto told AFP.

"Gamers are surely not blown away by the reveal like they were when the original Switch was shown for the first time, but I think year-one demand at least will be very high."

The Kyoto-based company has been diversifying into theme parks and funding films based on its characters such as the huge 2023 live-action hit "The Super Mario Bros. Movie".

"However, Nintendo still generates approximately 91 percent of its revenue from its Nintendo Switch business, which shows the importance of the Switch 2," said Darang Candra, an analyst with games market research firm Niko Partners.

In afternoon trade, Nintendo shares were down 4.84 percent, having pared its earlier steep losses.

F.Young--SFF