Nintendo shares tumble as memory chip shortages bite

Despite a record-breaking global debut for the Switch 2 last summer, Nintendo’s stock has taken a significant hit, falling more than 10% on Wednesday.

The dip follows quarterly revenue figures that failed to meet market expectations, largely due to an unprecedented global shortage of memory chips.

While the company celebrated a 24% rise in annual profits—driven by the enduring success of the original Switch—investors are becoming increasingly jittery about rising component costs.

The pressure is mounting as analysts look toward 2026 as a "make-or-break" year for the new console. Although President Shuntaro Furukawa suggested that current results remain stable, he admitted that prolonged high prices for memory chips could eventually erode the company's margins.

With shares down 15% since the start of the year, the gaming giant is now banking heavily on its intellectual property to drive hardware adoption.

To entice gamers to upgrade, Nintendo has a high-profile software pipeline scheduled for early 2026. Fans can expect Mario Tennis Fever in February and Pokémon Pokopia in March.

Furthermore, the company is looking to replicate its previous cinematic success with the April release of The Super Mario Galaxy Movie.

This multi-media strategy proved vital in 2023, and Nintendo hopes this fresh wave of nostalgia will convince the mass market that the Switch 2 is a necessary successor to the best-selling original.