Nintendo's latest Direct has not gone down well with investors, as the company's share price dips over concerns around its Christmas lineup. The event, held on June 9, 2026, was massive for fans of role-playing games, thanks to announcements like Xenoblade Genesis and Kingdom Hearts 4, but it lacked major first-party franchises.
Ocarina of Time Remake Revealed
The big reveal, which had leaked ahead of the Direct, was the remake of The Legend of Zelda: Ocarina of Time. While it is expected to be the big Christmas game for the Switch 2, the presentation showed only a brief shot of Young Link on a bed, leaving many underwhelmed. In the second year of a new console, this was not enough to enthuse investors.
Stock Market Reaction
Following the Direct, Nintendo's shares fell by 7.5%. According to Reuters, the company's shares have dropped by around a third since the start of 2026, with a major dip occurring after the Switch 2 price hike announcement in May. Jefferies analyst Atul Goyal attributed the latest drop to the absence of a mainline 3D Mario game for the holiday season. 'Year 2 now enters the holiday window without a franchise title of comparable pull,' Goyal said.
Comparison with Original Switch Launch
The first year of the original Switch featured The Legend of Zelda: Breath of the Wild, Splatoon 2, Mario Kart 8 Deluxe, and Super Mario Odyssey. In contrast, the Switch 2's lineup relies heavily on remakes and B-tier franchises, such as Star Fox, Kirby Air Riders, and Yoshi and the Mysterious Book. While Mario Kart World and Donkey Kong Bananza are notable, the lack of a new 3D Mario, Animal Crossing, or sequel to Tears of the Kingdom raises concerns.
Other Factors at Play
The tumbling share price may also be influenced by a surge in AI stocks on the US market, which negatively impacts other companies. Additionally, Nintendo shares have historically plunged after major presentations, as seen after the Switch 2 reveal in 2025. Despite this, the current sentiment reflects broader doubts about the Switch 2's holiday prospects.
Looking ahead, 2027 could bring changes with the promise of Pokémon Winds and Waves, but for now, investors remain cautious. The lack of a major franchise title for Christmas 2026 is a key concern.
