Nintendo Shares Slump as Price Hikes, Games Shortfall Spook Market
The company raised Switch 2 prices and gave a weaker outlook as investors worried about limited blockbuster games and a 7% share drop in Tokyo.
- Nintendo shares fell 7% in Tokyo on Monday after the company announced price hikes for the Nintendo Switch 2 and provided a conservative outlook amid concerns over a lack of upcoming blockbuster titles.
- Beginning May 25, 2026, the Japanese Language System Switch 2 price will rise from ¥49,980 to ¥59,980, with further increases in the U.S., Canada, and Europe starting September 1, 2026, as electronics makers grapple with memory chip costs.
- Morningstar analyst Kazunori Ito wrote that the year-on-year decline in shipment guidance "risks signaling that Nintendo lacks confidence in its pipeline," as the company lacks potential blockbusters.
- Unlike Nintendo, Sony shares rose 10% in Tokyo on Monday, with analyst Amir Anvarzadeh of Asymmetric Advisors noting Sony is "in a much better position to pass higher costs of memory chips to consumers" due to PlayStation 5 longevity.
- Jefferies analyst Atul Goyal wrote that "the second year is crucial" and predicted Nintendo will release a Mario AAA game this year to boost engagement and counter the "too pessimistic" market sentiment.
24 Articles
24 Articles
As the global memory supply shortage intensifies, console prices are rising one after another. Nintendo recently announced that it will raise the prices of its consoles, the Switch and Switch 2, by more than 12%. This move is analyzed as a decision to adjust device prices due to increasing pressure on profitability and sluggish stock prices caused by so-called "chipflation" (memory + inflation) resulting from the growing demand for artificial in…
Nintendo shares fell 7% in Tokyo trading on Monday after the company raised prices for its new Switch 2 console and investors expressed concerns about a lack of big games that could boost sales. Although the company reported strong hardware sales for the fiscal year ended in March, its guidance for this year disappointed the market. Analysts say Nintendo is relying heavily on popular franchises such as The Legend of Zelda and Pokémon, but is cur…
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