It's just 100% backfiring hardcore. Quite a hefty stock loss and people now actively pissed off at them to the point where they may even be losing consumers. Definitely *not* something you want to do in a year where your competitors will be releasing new consoles and jumping another generation while you're *still* playing catch-up with consoles from the previous generation, so now you'll be at least 2-if-not-3 generations behind.
I agree that Nintendo's strategy of building hype, if it exists, is "backfiring"... Maybe I wouldn't use that term. It isn't working out as they planned, maybe. I've mentioned before that I think for the past few years, Nintendo has been looking for the "perfect" hype timeframe, where thirst for information is at its max and interest is also at its max so that no matter what, the overwhelming majority of viewers are stoked to see the direct happen, and the viewing numbers go up. If you'll look at my posts here from a while back, I have asserted that announcements are television, or a wrestling match to them - it's all about the ratings, and I just think there's a sweet spot that they feel like they're not hitting, but that they could reach.
But I disagree that under any circumstance is this something they need to actively shy away from. Is it obnoxious for the fans? Sure. Are they dropping stock because of the lack of a direct? Probably not. They give quarterly shareholder reports (that's one more a year than directs) and while I'll be fast to call out the fact that they dropped a significant amount after their most recent quarterly, they tend to drop stock around every one. You can't please every bigwig every time and coronavirus is running a clinic on the global markets in general (which I think it's kind of goofy to unload your stocks in a Japanese video game manufacturer during a virus outbreak but I'm not an investment adviser), so if there's a continued dip, we can't blame the lack of news. The gist of what I'm saying here is that the important investors already know what's coming down the pipe and they aren't waiting for what is essentially the consumer's quarterly report to make their financial decisions. And reall, imagine thinking that any consumer is going to not buy the games because Nintendo took too long to announce them. We can kick and scream and say we're pissed all we want to, but at the end of the day, we're gonna be waiting in line at 8:30 in the morning outside of a GameStop to get our game and our preorder bonus.
Likewise, Nintendo is doing the right thing lagging behind in the console rat race. Video gaming is a weird industry, and it's evolved a hell of a lot since the late 80s and even the 2000s. For almost a decade now, I've been of the opinion that there's a fast approaching wall as far as graphics are concerned, which is ultimately all anyone cares about when the new console generation is announced. It was viable to keep up this 5 year cycle of consoles in 85 to 90 and 90 to 95 - the technology was growing in leaps and bounds and we were moving from the console not being able to keep up with more than 8 colors on screen at a time to full 3D environments where it wasn't how many colors your textures had but how big they were that mattered... But where are we now? Modern consoles release looking identical to their predecessor's high end, late life games, but at outrageous prices, with the downside that the framerate stutters and glitches abound as the developers have to port their projects to a new, unfamiliar system. Even Nintendo suffered with this, with Breath of the Wild having certain segments that were optimized better for the Wii U and others optimized better for the Switch - had the game been made for one or the other entirely, I doubt there would ever be an instance where the framerate drops below 30, and with a little more cook time, Breath of the Wild likely could have achieved 60 barring very specific areas, but at least Nintendo doesn't suffer speculation that their new console is going to cost US $999. Give me one good reason to keep up with the competition in terms of power when your games are functional on launch, look great and will very likely age well, and most importantly are fun to play.