Nintendo‘s share prices have fallen 10%, their steepest decline in three months, after the company unveiled a disappointing sales forecast. The company has been on something of a hot streak for a while now, with the Switch 2 outpacing its predecessor and games like Pokemon Pokopia and Tomodachi Life: Living the Dream blowing up. Now, though, things look a little shakier for Nintendo, and investors aren’t impressed with what they’ve seen lately.
On May 8, Nintendo confirmed what many feared was going to happen and raised the price of the Switch 2 across the globe. When the $50 price hike takes effect, it will make the system Nintendo’s most expensive console to date, not accounting for inflation. That’s an unfortunate turn of events for gamers, and one that may impact the Switch 2’s sales going forward as macroeconomic conditions squeeze consumers’ wallets. It may be too soon to say if and to what extent that will happen, but Nintendo and its investors don’t appear all that optimistic about things going forward.
Nintendo Stock Price Just Took a Big Hit
Nintendo stock prices take a major hit, reflecting ongoing economic volatility for technology-focused markets like the video game industry.
Nintendo Shares Fall After Low Sales Projections for Fiscal Year 2027
According to a recent Bloomberg report, Nintendo’s stock price fell by 10% on the morning of May 11 after Nintendo projected it would only sell 16.5 million Switch 2 consoles this fiscal year. While that’s still a considerable number, it’s a noticeable drop when compared to the blistering pace the console has sold until this point. Despite a record-breaking start, Switch 2 sales fell behind the PS5 in the first two months of 2026, and now Nintendo expects this relative drop in sales to continue throughout fiscal year 2027. Selling 16.5 million units would still put the console ahead of the original Switch’s performance in its first 22 months, but the steep decline from fiscal year 2026’s 19.86 million units was enough to make investors wary.
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Lower-than-expected sales projections may not be the only driving force behind this shift. When Nintendo President Shuntaro Furukawa announced plans to enhance the Switch 2’s ownership value after raising its price, he also mentioned that the price hike doesn’t fully cover rising production costs. That means that the RAM crisis and other supply chain expenses are tightening the Switch 2’s margins. It should be no surprise, then, that the combination of lower sales and less profit per console would spook investors.
Regardless of the cause, Nintendo’s stock price is now at its lowest point since August 2024. Major gaming companies like Nintendo and Sega suffered major stock price losses that month as console sales sputtered and the global economy as a whole put pressure across industries. Suffice it to say, that’s not exactly a favorable comparison for Nintendo or its investors. The company did come out of the 2024 rut to reach all-time highs, but those highs came after the launch of the Switch 2, so Nintendo’s software will likely have to do some heavy lifting to bring things back up to where they were.
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Nintendo may still have an ace or two up its sleeve. The rumored Legend of Zelda: Ocarina of Time remake seems increasingly likely, and Furukawa’s statements about boosting the Switch 2’s value through its games could mean there are big plans in store. Only time will tell what these are or what kind of effect they’ll have, but any lift could benefit Nintendo at the moment.
Source: Bloomberg
