The share price of Nintendo dropped after the company announced the $300 price tag of its upcoming games console: the Nintendo Switch.
By the end of Nintendo’s presentation of the Switch on Friday, the company’s stock had fallen by almost 6%.
One of the main reasons for the stock decline is thought to be the higher than expected price tag of the console, which was about $50 higher than what most analysts had expected, according to The Financial Times.
At $300, the Switch will enter the console market at a relatively high price point.
In comparison, Sony’s PlayStation 4 currently retails for $260, and the Xbox One can be found for around the same price.
And while both the PS4 and Xbox One are years into their life cycle, they will still be the Switch’s main competitors at launch.
However, Tomoaki Kawasaki, an analyst at Iwai Cosmo Securities, told the FT that consumers could be won over by the ‘planned software lineup’.
“If you look at the battle game using the motion controllers and other key titles involving Super Mario and Zelda, you can see the preparation on the software front has been thorough. Shares may have fallen today but there is a possibility that sales will exceed expectations,” Mr Kawasaki said.