On Wednesday, Benchmark revised its price target for shares of Nintendo Co Ltd (TYO::JP) (OTC: NTDOY (OTC:)), reducing it to JPY8,500 from the previous JPY9,100. Despite this change, the firm maintained a Buy rating on the stock.
The adjustment follows Nintendo’s fiscal 2024 earnings report, which aligned with expectations. Still, the company’s forecast for fiscal 2025 did not meet consensus estimates and appeared to overlook the potential impact of the anticipated launch of the Switch (NYSE:) 2 console.
Nintendo has confirmed its intention to unveil a successor to the Nintendo Switch within the current fiscal year, which would be more than nine years since the initial console was introduced to the market. The original Nintendo Switch has been a significant driver of the company’s sales since its release. The announcement of a new console is highly anticipated by the gaming community and industry observers.
The company’s upcoming Nintendo Direct event in June is set to concentrate on the software lineup for the year 2024. Nintendo has stated that the event will not include any discussion about the new console. This focus on software may suggest that the company is looking to bolster its content offerings in preparation for the eventual introduction of the new hardware.
The update on Nintendo’s plans comes at a time when the gaming industry is watching for the next big development from one of its key players. The Switch has been a popular platform, and the prospect of a new iteration is likely to garner significant attention when more details are made available.
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Investors and gamers alike are now looking forward to additional announcements from Nintendo regarding the future of their console offerings and how the company plans to continue its success in the gaming market. The reduction in the stock price target reflects immediate market reactions and projections based on the latest financial guidance and the anticipated hardware developments.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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