Nintendo takes big gamble with Switch’s split personality

TOKYO (Jan 16): Nintendo Co.’s new Switch gaming console won’t be in stores until March 3, but the machine is fully baked and ready to play. The press got a chance to try out the new machine at an event in Tokyo last week, and events will be held in Japan and North America to let people experience the product before its official debut.

So far, investors aren’t convinced the device will replicate the runaway success of the Wii console a decade ago, with Nintendo shares dropping 5.9% on Friday after pricing and other details were released. The stock fell as much as 3.6% on Monday, bringing the decline in the company’s market value to about US$2.7 billion ($3.9 billion) over the two trading days.

The Switch is Nintendo’s biggest bet in years. It’s a bold attempt to unify gameplay at home and on the go with a tablet sporting wireless controllers that can be used anywhere, but also connects to TVs. Whether that wager pays off depends on whether people are willing to pay US$300 or 30,000 yen for a machine that offers a lot of incremental improvements and ideas, but no single technological or conceptual breakthrough that makes the Switch easy to understand. Here are some hands-on observations from Bloomberg’s team at the Tokyo event:

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