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Nintendo shares tumble as Nintendo Switch 2 price hikes and weak game outlook rattle investors
The stock dropped 7% as markets reacted to concerns that higher console prices could dampen demand
Nintendo shares fell sharply in Tokyo on Monday after the gaming giant announced price increases for its upcoming Nintendo Switch 2 and issued a conservative outlook that disappointed investors.
The stock dropped 7% as markets reacted to concerns that higher console prices could dampen demand, especially among Nintendo’s large base of casual gamers.
The company said the Japanese-language Switch 2 model will cost 59,980 yen starting May 25, up 10,000 yen, while prices in markets including the United States will rise from September 1.
Although Nintendo reported strong hardware sales for the fiscal year ended in March, its forecast for the current year underwhelmed analysts.
Investors were also unsettled by guidance pointing to lower game shipments, fueling concerns that the company may lack major blockbuster titles to drive momentum for the new console.
Morningstar analyst Kazunori Ito said the decline in shipment guidance could signal limited confidence in Nintendo’s software pipeline, though he added that game engagement often accelerates in the second year of a console cycle.
Some analysts remain optimistic. Atul Goyal said the market may be overlooking the possibility that Nintendo could launch a major new Mario title this year, which could boost demand.
Unlike rival Sony Group Corporation, which has broader business operations, Nintendo remains heavily reliant on its core gaming segment.
Sony’s shares rose 10% on Monday after the company forecast improved profitability in its gaming business.
The contrasting stock moves highlight investor concerns over whether Nintendo can maintain excitement around the Switch 2 amid higher prices and an uncertain lineup of new games.
