Los Angeles. Nintendo unveiled its highly anticipated new console, the Switch 2, on Thursday, an announcement gamers had been eagerly awaiting since rumors first emerged years ago.

However, the initial reaction to the Switch 2 was underwhelming, and Nintendo's Tokyo-listed shares dropped 4.3 percent on Friday, following a record surge ahead of the announcement.

The successor to the original Nintendo Switch is set for release later this year, according to the promotional video. The video highlights a larger version of the Switch, which closely resembles its predecessor, with controllers (Joy-Cons) now attaching to the side of the main unit rather than sliding in.

The Switch 2 will be compatible with exclusive games designed for the new console, as well as both physical and digital games from the original Nintendo Switch. However, some Switch games may not be fully compatible with the new system.

While the announcement offered limited details, Nintendo confirmed more information will be shared during its April Nintendo Direct event. The company also plans to host "Nintendo Switch 2 Experience" events in major cities, including Los Angeles, New York, London, and Paris, starting in April. Registration for these events will open on Friday.