Home United States USA — software UPDATE 2-Nintendo disappoints with $299 price for new Switch console

UPDATE 2-Nintendo disappoints with $299 price for new Switch console


NewsHub* U. S. price same as current Wii U console
* Japanese price up 20 pct from Wii U
* Price too steep considering number of games -fund manager
* Shares end at two-month low
(Recasts with price reaction; adds comments from industry watchers, details on game titles)
TOKYO, Jan 13 (Reuters) – Nintendo Co Ltd on Friday 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 Japanese firm said it will launch the Switch, a hybrid home console and handheld device, on March 3. It will be priced $299.99 in the United States, the same as Nintendo’s current Wii U console, whereas in Japan, it will cost about 20 percent over its predecessor at 29,980 yen.
Nintendo, which began by making playing cards in the late 19th century, is counting on the Switch to revive its earnings which rely heavily on console sales.
But the pricing left Nintendo shares ending at a two month low after falling as much as 6.3 percent. That compared with a 0.8 percent gain in the benchmark Nikkei 225 share price index .
“Pricing at around 25,000 yen would have been received well but the pricing is on the high side,” said Fumio Matsumoto, senior fund manager at Dalton Capital in Japan.

Continue reading...