Nintendo priced its first console in about four years above market expectations, disappointing investors and clouding its prospects of winning back gamers who have shifted from consoles to smartphones
The Switch is a hybrid home console and handheld device, on March 3. It will be priced $299.99 in the United States which is the same as Nintendo’s Wii U console. Japanese buyer are expected to pay 20 per cent more than the Wii.
The pricing left Nintendo shares ending at a two month low after falling as much as 6.3 percent.
Few pe0ple can see the logic of the price and analysts think that the outfit scored an own goal – effectively pricing itself out of the market. This was bad as it needed a winner after the Wii U flopped due to a dearth of popular game titles and a consumer migration to smartphone games, pushing the company into a loss for three years since March 2014.
Analysts said the Switch is likely to offer a richer game lineup than its predecessor as the new console is powered by processor chips based on game developer-friendly architecture by designer ARM.
Nintendo said more than 50 game software makers are developing 80 titles for the Switch. Of those, eight will be available at the time of launch in Japan, including “The Legend of Zelda: Breath of the Wild.”
Other reports suggest that Nintendo has made the mistake of limiting supply in the US to the point where available units will disappear in minutes. It will take months for those who actually want a machine to get one.
Nintendo previously said it expects to ship 2 million Switch consoles by the end of March.