Nintendo's E3 2018 press conference may not have gone entirely to plan, after its share price saw a sharp drop. The company's Tuesday morning slot left it as the last of the core press conferences at this year's expo, and expectations were high for Nintendo to double down on the huge success of the Switch with a showcase of what's coming up next.
Although the extensive focus on Super Smash Bros. Ultimate was very well received, particularly with the news that every playable character from Smash history would be returning for this version, unfortunately the presentation was something of a let-down overall. In general, the reveals weren't that interesting, with little to get the heart racing and a severe lack of information on such massive franchises as Pokémon.
It turns out that the lukewarm press conference has had a financial impact for Nintendo. As reported by Nintendo Life, the company's stock price shot down severely after the presentation, with a drop of over 6% in the company's share value. That might not be the biggest fluctuation that Nintendo has seen over the years, but nonetheless it shows a market reaction to Nintendo's announcements.
According to analysts, this appears to be down to a concern over whether Nintendo can keep up with predicted hardware and software sales based on the announcements made. On top of this, there are also worries over the company's online service for the Switch - concerns which have also been felt within the gaming community itself.
Although markets often balance out after a dramatic shift such as this, the worries that resulted in this share price drop are understandable. Nintendo's major game announcements of E3 2018 were Super Mario Party and Fire Emblem: Three Houses, and neither are likely to be console sellers in the way that Super Smash Bros. Ultimate is. It leaves a lot on the shoulders of the upcoming 2019 Pokémon Switch RPG, but this game was a noticeable absence for the company at the expo.
All in all, it's unlikely that this is going to derail the company - after all, Nintendo still appears confident in its own strategy and the Switch has been a sales powerhouse so far. However, a lot of that was due to a strong line-up of first party games, and so the company will want to make sure that it maintains the position it has built for itself so far. Hopefully, there will be more solid announcements on the horizon for Nintendo.
Source: Nintendo Life
Leave A Comment
Looking for an AD FREE EXPERIENCE on ScreenRant?Get Your Free Access Now!