The general consumer doesn't understand how miserable a failure their latest console was and that the small catalog of "high rated" games (debatable considering their releases this year) isn't enough to sell that system to an audience beyond diehards and children. Their pivot into mobile is admirable (chasing the cohort they lost that made the original Wii a hit), but in terms of long-term growth anyone looking to invest should hold-off until their next console (NX) shows promise beyond the mediocre niche they currently occupy.
Technology was never their selling point—even the original NES came out with an 8-bit processor while 16 bit processors were already available. Why? Because it was cheaper, and easier to develop for.
Their main selling point has always been strong gameplay experiences.
Top down action RPG (Zelda)
Decision based RPG (Dragon Warrior)
Picture games (Anticipation)
Game show games (Family Fued)
Sports / Racing games (Punch Out, Rad Racer)
ETC.
Their current strategy consists of developing and selling software to the casual cohort they lost between the Wii and WiiU release, in order to bolster new hardware sales. Buying their stock on the announcement of that software is ill-advised because no one knows what their new hardware looks like and whether or not they can convince that audience to spend cash on it when the alternatives are such better/easier sells.
[0] https://www.nintendo.co.jp/ir/en/sales/hard_soft/ https://www.nintendo.co.jp/ir/en/finance/2016_01.html