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(Bloomberg) -- Nintendo Co. fell the most in more than three months after giving a glimpse of its next-generation Switch 2 in a two-minute video, saying that more details would come on April 2.
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The new model is similar in concept and design to the current Switch, one of the most popular gaming consoles, according to the teaser video posted to its website on Thursday.
The video didn’t reveal many specifics about the device, but gave a peek of a new version of Mario Kart and confirmed it would be backwards compatible with games for the original Switch. It also appeared to show a bigger screen for the new console, a new button and magnetically-attached Joy-cons. More details will be disclosed in April, the company said.
Nintendo’s stock price fell 5.9% Friday morning in Tokyo, the biggest intraday drop since end-September.
“The stock declined because the revealed Switch 2 was exactly in line with what’s been leaked online and lacked any surprises,” said Hideki Yasuda, senior analyst at Toyo Securities. “But I expect the stock will be back as investors’ focus moves to the launch date and price after the April 2 announcement.”
Nintendo announced a number of events around the world where users can try out the Switch 2 on May 31 and June 1. That suggests an official launch date in June, said Robin Zhu, an analyst at Sanford C. Bernstein.
Game developers are counting on the new Nintendo platform to jump-start lackluster momentum in an industry competing with an ever-expanding range of entertainment for users’ time. Consoles in particular are fighting increasingly popular PC games, resulting in project cuts and staff layoffs throughout the ecosystem. Already, many game publishers are lining up some of their best franchises for the new Switch in hopes of winning back players.
The new console will also support the company’s online gaming services, Nintendo said in November, although it now cautioned that some games won’t be playable on the new hardware.
Consumers have eagerly awaited an announcement on a successor to the Switch, which faces more powerful and modern updates from rivals Sony Group Corp. and Microsoft Corp. Beside the features of the new hardware, focus is on Nintendo’s ability to meet demand at the console’s launch.