Emotions are what drive the stock market. That doesn't mean they are wrong. When you are late on a product, you have failed to deliver on time. When you fail to deliver on time, how can you be trusted to deliver other things on time? And if you can't be trusted, why investors trust their money with you? Answer: They won't they will sell, and when they sell, stock prices go down.
The selloff of Nintendo stock was emotional. As well as a logical response. As I said before, the delay inspires a lack of confidence. Again why, would you trust your money with someone you aren't confident in.
Had other investors done their research they would not have sold their Nintendo stock. Why? What research? Nintendo's other delays? Where they had profitable games? Or Nintendo's handheld profits? Unfortunately, neither of them have anything to do with how a game will perform in the mobile environment as a free to play game. This was the first time, so no information exists yet. The remaining investors are trust Nintendo on this either on the benefit of the doubt or on Nintendo's other offerings.
Miitomo is going to be a very profitable game just like Tomodauchi life except more protable due to the market size they are tapping into. After the sellout i added more to my position in Nintendo. Tomodachi life is completely different from miitomo. Different markets and Different revenue strategy. So based on Tomadachi Life, you can't make any reasonable conclusions on Miitomo, let alone its expected profits. Not to mention marketsize alone is never an indicator of performance, case in point, the Wii U does worse in the US (A bigger market) compared to Japan (A Smaller Market). If you actually understood the Mobile market, you'd realize the competition is on another order of magnitude than on even handhelds.
Assuming, interbrand competition i.e one nintendo game vs another:
Miitomo will be competiting with about 500,000 other mobile games(App Store), another 1,000,000 other apps(App Store), and then 1.9 million apps in the Google Play store. That about 4 million apps
Meanwhile, Tomadachi life competes withabout 652 3ds games and 1149 Vita games (Lol turns out Vita has more games than 3DS)
Essentially, its not looking good for Miitomo
The company is going to vastly increase their revenues thanks to mobile and it isn't unrealistic to expect the share to appreciated by 300% over the coarse of the next few years. Its pretty unrealistic to depend on mobile to be the major factor, in that 300% jump, but since the time period is nebulous, possibility is still there.
It may even appreciate more than that if nx produces more profits and 3ds/wiiu but you can assume anything when you don't fully know yet what their plans are. However, in the mobile space it's a new business and I think you can assume Nintendo will do quite well in this market based on a variety of reasons. You need to give those reasons, because I just showed how the potential most likely reasons, won't ammount to anything.