Technology - - Jan 13,2017
Nintendo’s next-generation gaming system, Switch, will be available for sale globally on March 3; however, Nintendo shares slumped due to the high end starting price of the console.
On Friday, Nintendo shares slipped as investors were disappointed due to the fairly high starting price of the much-awaited gaming system, Switch.
Tatsumi Kimishima, president of the Japanese gaming giant declared that in North America, Switch will be priced at $299.99 and the price is Japan is stated to be 29,980 yen. However, he did not highlight a standard price for the European market.
Jefferies analyst, Atul Goyal, believes that currently there is fierce competition in the console market and pricing does act as a key factor in determining the success of the Nintendo Switch.
Goyal had assumed a retail price of $250. But Switch costs about $50 more than the expectations of the market. The Sony PS4's starting price is $299.99, whereas, Microsoft's Xbox One starts at $249.
Nintendo shares slumped 5.75 percent to 23,750 yen as the trade closed; commentators pointed out the higher than expected retail price of the gaming system spread concerns over the product's growth.
Switch is basically a hybrid gaming system which is a part gaming console, part handheld device and even acts as a tablet.
Nintendo initially announced the launch of Switch (previously called the NX) which caused a great level of buzz regarding the so-called Joy-Con controllers, as they can be split into two individual gaming controllers. Moreover, they come with motion control sensors, which also includes an infrared camera over the right Joy-con that can sense the motion, shape and distance of objects before the controller.
In the recent past, Nintendo has struggled in the gaming console sector, following a disappointing through its Wii U console, which sold only 13.36 million units until September 2016 since its 2012 launch.