Nintendo's stock fell sharply by 8.4% on Monday after the company announced a price increase for its Switch 2 console. The price hike was attributed to rising memory chip costs driven by the AI infrastructure boom. Furthermore, Nintendo revised its sales forecast for the current fiscal year to 16.5 million units, falling short of the 19.86 million units sold since launch. Analysts cited both the price adjustment and the lower sales projection as the main factors fueling investor concern.
Nintendo's stock experienced a sharp decline on Monday following announcements regarding a price increase for the Switch 2 and a revised, lower sales forecast for the console.
Nintendo's shares dropped significantly on Monday in Tokyo, Japan. The stock closed 8.4% lower, reaching 7,020 yen. This decline marks the lowest point for the stock since August 2024, contributing to a 34% fall for the year.
The market reacted negatively to two primary announcements made by the gaming giant:
Industry analysts pointed to the combination of the price increase and the reduced sales outlook as key concerns for investors. Serkan Toto, CEO of Kantan Games, noted that the forecast indicated a decline in hardware sales for the Switch 2 this fiscal year, which contrasts with the typical upward trend seen with new console releases. Toto suggested that the price hike was expected to lead to softer consumer demand.