Despite what was a mostly positive earnings report published by Nintendo this week, the company's stock price experienced its biggest daily drop in more than two years.
Nintendo published its Q1 2022 earnings report this week and it was mostly good news for anyone with an investment in the company. The biggest takeaway may well have been the Switch's total sales to date. 89.04 million worldwide, surpassing the lifetime sales of the PS3 and moving the Switch up into seventh place overall.
There was some bad news, though. Nintendo's profits are down versus the same period last year. That was really to be expected though considering the circumstances. The same period last year played host to the start of the pandemic. During that time, people looking for alternative forms of entertainment during widespread lockdowns.
Despite a drop in profit being expected, Nintendo's stock price has still experienced a steep drop off following the publication of its report. The steepest drop-off in a single day for Nintendo's stock since February in fact, according to Bloomberg. The 8.8% dip came despite Nintendo's plans to buy back and cancel ¥100 billion of its own shares, something that normally boosts a stock's price.
Bloomberg elaborates on why Nintendo's stock experienced the drop in the wake of what was mostly good news. Even though the Switch continues to sell, the drop in profit may have acted as a reminder to many that a lot of the people who turned to gaming will eventually turn away as the pandemic continues to wind down. There has also not been a launch that could match the monster that was 2020's Animal Crossing: New Horizons. Nintendo's top performer last quarter was New Pokemon Snap which sold 2.07 million copies, not including Japan.
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If that's the case, it could be more of the same for Nintendo during this current quarter. Its only major exclusive launching during this three-month period, The Legend Of Zelda: Skyward Sword HD, is already on the market. The final three months of the year will be when Nintendo really gets to shine once again. Remakes of Diamond and Pearl, a new Mario Party, and, of course, the arrival of the OLED Switch in October.