Nintendo just published their third-quarter earnings release, and today it's having a significantly negative impact on their stock value. Nintendo had originally aimed for a target of 20 million sales for the Nintendo Switch console during the current fiscal year, but they recently revised that forecast. Nintendo now expects to sell 17 million Switch consoles by the end of the fiscal year (March 31st), and this decrease in hardware sales has investors panicking.
According to the latest from Bloomberg, Nintendo stock just plunged 9.19% on the Tokyo Stock Exchange, decreasing their market cap by billions. Investors likely see Nintendo missing their target by 3 million as a bad sign, and Nintendo also announced that their upcoming Mario Kart mobile game is delayed from March to Summer.
Nintendo's report definitely had a few negative aspects, but this seems like a pretty severe overreaction. Nintendo made $1.5 billion in revenue over the past quarter and set multiple new software records. They sold over 50 million games during the holiday season, leading them to improve their software forecast for the fiscal year. They now expect to sell 110 million pieces of software, up from their previous projection of 100 million. Additionally, they unexpectedly announced a new Dr. Mario game for mobile devices.