Nintendo shares closed lower on Thursday as investors struck a note of caution ahead of the release of "Super Mario Run" on Apple's iOS, a game which is seen as risky but crucial for the Japanese company.
"'Super Mario Run's' positive news already priced into the current stock price ... I'm a bit cautious," Eiji Maeda, analyst at SMBC Nikko Securities, told CNBC by phone on Thursday.
Maeda has a price target of 22,000 yen ($186.92) on Nintendo's stock, representing a 20 percent decline from Thursday's close. Year-to-date, Nintendo's share price is up over 64 percent. The gaming giant's stock closed at 27,575 yen Thursday, down 1.43 percent for the session.
"Super Mario Run" is set to be released globally across the world on Thursday and is free to download but costs $9.99 to unlock the full game. It is forecast to earn more than $71 million in worldwide gross revenue during its first month, less than half that achieved by "Pokemon Go" in the same time period, according to SensorTower research.
The release of the game is seen as risky for Nintendo as it is charging a premium price. Most mobile games today are free to download and work on a model of selling items within the game to earn revenues.