Nintendo Share Price Plummets As Investors Are Badly Spooked

"Nintendo hoped last week's announcement of a price increase for the Switch 2 would be enough to un-spook its shareholders, that's now been entirely dashed. Reuters reports that the company's share price has fallen 7 percent since markets opened in Japan Monday 11, while it's come to light (via ) that the $50 increase still isn't going to be enough to match increased expenses when producing the Switch 2. Without a big new game anywhere on the 2026 horizon, investors are really getting the jibblies."

"Last week's price hike announcement was intended to calm market nerves after Nintendo had seen five months in a row of falling share prices and long-term concern from its investors, alongside lowering its sales expectations for the Switch 2 over the next year. This was despite simultaneously announcing that the new console had sold 20 million units and 50 million games in its first nine months, but of course when it comes to the deranged world of market capitalism it's only ever about what's going to happen next, and never what actually just happened. As a consequence, today's trading saw a colossal 7 percent wiped off Nintendo's value, while Sony saw its own price leap up 10 percent."

"It's now been made more clear that even the year-one price increases on the Switch 2 aren't actually enough to meet the increased costs of production for Nintendo, and that's despite the rises within Japan being far more steep than those due to hit the rest of the world this September. Nintendo president Shuntaro Furukawa reportedly said that the higher price "does not fully account for all cost increases," referring to the higher price of computer components being caused by the ridiculous AI race and the current spike in oil prices."

Nintendo’s Switch 2 price increase announced last week failed to reassure shareholders. Nintendo’s share price fell about 7% after markets opened in Japan, while Sony’s shares rose after its own price move. The higher Switch 2 price still does not cover increased production expenses, even though the console has sold 20 million units and 50 million games in its first nine months. Nintendo had previously lowered sales expectations and faced falling share prices for five months. Nintendo president Shuntaro Furukawa said the higher price does not fully account for all cost increases, citing higher computer component costs driven by the AI race and higher oil prices. With no major new game expected in 2026, investor confidence remains weak.

Read at Kotaku