Nintendo announced its first smartphone game, but postponed its release from the end of the year that was originally set, to next March.
As some predicted, it wasn't a Super Mario but "Miitomo," an app in which players create their own avatars to talk to each other.
Since this delay, the company's shares fell by 10% on the news.
Despite the drop, one analyst said it was a typically cautious and prudent step into smartphone gaming from the popular video game maker.
The company said at a presentation in Tokyo that Miitomocould be a “free-to-start communication” app. Players would be able to create their own Mii avatars, which they would use to chat with other players.
The features resemble more of a social network than a traditional Nintendo.
The game was designed as a showcase for the company's other, as yet unannounced smartphone gaming efforts, it said, adding that it planned to release five new apps by the end of March next year.
According to the Agence France-Presse, the company's new president, Tatsumi Kimishima, said more time was needed to "improve quality." After an initial 10% drop, the company's share price fell 8.97% to close at 20,945 yen (£113.46, $173.12). Shares in DeNA, the company with which the major company collaborated to produce the game, fell by about 15% to 2,080 yen.
Mr Bailey said investors should be advised to recognise that Nintendo 's strength is its intellectual property, such as the Super Mario series . Its track record, he said, suggests the company will bring its most popular games to smartphones once it has gained experience on the platform.
"Nintendo has the potential to chart a unique path in mobile, but the journey could be confusing for investors expecting immediate success. Managing those expectations, while maintaining the value of its IP, is going to be the key challenge for the popular company when it comes to mobile."
