This Is Why The Switch Lite Caused Nintendo’s Stock To Plummet

This week, Media Create and Famitsu revealed the Nintendo Switch Lite sold between 114,000 units and 170,000 units in Japan.

Despite the impressive start, Nintendo saw its share price plummet by 4%, in the US, wiping out USD4 billion of the company’s market value.

Industry analyst Serkan Toto has put out a report detailing what happened. The reason is because Citibank expected the Nintendo Switch Lite to sell at least 300,000 units, and since the Switch Lite only sold 114,000 units as per the original Media Create report, Citi declared Switch Lite sales to be “soft”.

Citi’s comment was quoted by Bloomberg in their reports, thus causing investors to panic and sell their Nintendo stock.

Toto wrote that Citi’s original report was flawed. First, he said it would be impossible for an iteration like the Nintendo Switch Lite to sell 300,000 units in three days as no iteration has ever outsold the original console in their first three days in gaming history. He called Citi’s expectations “insane” on Twitter.

Second, Citi contradicted their first point by saying “Casual gamers that could be drawn to the new console are unlikely to rush to buy the console immediately after…launch.”

All these led to Toto declaring the drop in Nintendo’s value which was caused by Citi’s report was at best, a “big joke”, or at worst, a scandal.

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