US EditionNintendo shares slide 10% as momentum fears grow
- On Feb 4, Nintendo shares slid 10% in Tokyo as investors fretted about momentum for the Switch 2 and reacted to the company keeping annual earnings and hardware forecasts.
- Tariffs from 2025 and rising memory costs have strained margins as Shuntaro Furukawa, Nintendo president, highlighted 2025 U.S. tariffs hitting Switch 2 production in China and Vietnam alongside an AI-driven memory-chip shortage.
- Despite record hardware sales, the earnings call revealed profit at 23%, below expectations, while Nintendo sold more than 17 million Switch 2 units through December 2025.
- Furukawa signalled pricing is on the table, saying he did not rule out raising prices in January and aims to pass tariffs on to consumers; research firms predict Switch 2 prices will rise before 2026 ends.
- Analysts say 2026 is make-or-break for the Switch 2 as Nintendo plans Mario Tennis Fever in February, Pokémon Pokopia in March, and The Super Mario Galaxy movie in April.
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The group could reach a new sales record at the end of the accounting year, at EUR 12.3 billion. However, a global shortage of memory chips darkens the horizon.
The success of the Switch 2 console does not succeed in reassuring. After quarterly results deemed disappointing, and while concern is growing about the growing shortage of memory chips, Nintendo sees its action fall on the Stock Exchange.
Nintendo shares slide 10% as momentum fears grow
TOKYO, Feb 4 : Nintendo shares slid 10 per cent on Wednesday as investors fretted about momentum for its flagship Switch 2 gaming device. The Kyoto-based gaming company on Tuesday reported robust sales for the Switch 2 during the year-end shopping season, though the system is viewed as lacking high-profile ga
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