Published on May 11, 2026
Nintendo has enjoyed a record fiscal year, largely driven of the Switch gaming console. However, as the company looks ahead, uncertainty looms with new projections for the Switch 2. Investors are reacting, with shares falling significantly in Tokyo trading.
The company announced a price hike for the Switch 2, which will now retail at $499.99 in the U.S. starting in September. This change comes alongside a bleak hardware guidance, predicting sales of only 16.5 million units, a 17% drop compared to previous expectations.
Additionally, rising memory and shipping costs have contributed to a projected ¥100 billion negative impact on the company’s finances. As these factors converge, they paint a worrying picture for stakeholders and consumers alike.
The immediate consequence has been a sharp 7% decline in Nintendo’s stock prices on Monday. Investors are grappling with the possibility of decreased demand amidst a thin release pipeline, raising concerns about the company’s growth trajectory in an increasingly competitive gaming market.