Nintendo stock fell for the second consecutive day, declining more than 10% over five trading sessions. In Tokyo, shares dropped 5.45% to 7,943 yen. Analysts attribute this to an insufficiently strong release schedule for Switch 2 and the absence of a new 3D Mario game.
Investors expected more from the Zelda presentation and the Nintendo Direct held on Wednesday. During the Direct dedicated to Zelda's 40th anniversary, a remake of Ocarina of Time was announced for November 5. Then on Wednesday, the winter release lineup was revealed. Most of the titles revisit older projects: Pikmin 4 and Xenoblade Chronicles 3 are arriving as enhanced Switch 2 editions of games originally released in 2023 and 2022, respectively. Hyrule Warriors returns in a definitive edition. Other games are slated for later dates: Metroid Ravenous and a 3D Kirby game are coming in 2027. Monster Hunter Wilds and three Resident Evil remakes will also come to the console, although both titles were released on other platforms several years ago.
This combination is at the heart of the criticism. A new 3D Mario game has not materialized, and remasters and Switch 2 editions now occupy a significant portion of the holiday quarter. Analysts wanted exclusive content that would drive hardware sales. Upgrade options for existing game owners are already complete, but this is a rare occurrence. As a result, the outlook for console software looks less promising than the stock price had implied.
OpenAI CEO Sam Altman set aside two days to play Ocarina of Time. Players reacted to the same announcements in very different ways. Altman called the remake the best news he had heard in a long time. He then blocked off November 5 and 6 on his calendar and said he needed a bottle of Mountain Dew. Altman rarely mentions gaming, though he occasionally speaks about unusual interests, including the search for room-temperature superconductors, which he backed this week.
Meanwhile, the gaming industry continues to be an unstable business for major tech companies. In July, Microsoft cut 3,200 jobs in the gaming sector. A few weeks later, Apple's future CEO met with the Pokémon team at Apple Park. Now Nintendo must wait until November 5 to convert that enthusiasm into holiday sales. Until then, Nintendo's stock performance reflects investor expectations around the announcements.