Nintendo (NTDOY) Stock Plunges 8.4% on Switch 2 Pricing and Disappointing Forecast
Nintendo's stock dropped 8.4% to its lowest level since August 2024 after the company announced a 20% price increase for the Switch 2 due to rising memory chip costs and issued a disappointing sales forecast of 16.5 million units, down from previous sales. Operating profit guidance also fell short of expectations, fueling investor concerns amid a 34% year-to-date stock decline in 2026. Despite a 28% profit increase last fiscal year, the outlook for fiscal 2027 remains weak with projected revenue decline and lower-than-expected profits.
Key Takeaways Shares of Nintendo tumbled 8.4% in Tokyo trading, hitting 7,020 yen—the lowest point since August 2024 The Switch 2 console price increased up to 20% across major markets due to escalating memory chip costs fueled by AI industry demand The company projects 16.5 million Switch 2 sales for the current fiscal year, a decline from the 19.86 million units sold since launch Operating profit guidance of 370 billion yen fell significantly short of analyst expectations at 480 billion yen Industry experts suggest Nintendo’s forecast may be deliberately conservative, with Morningstar predicting 19 million unit sales Nintendo shares suffered a significant decline Monday following the release of annual earnings results and forward guidance that disappointed the investment community. *NINTENDO SHARES FALL 9% AFTER EARNINGS, FORECAST MISS ESTIMATE — zerohedge (@zerohedge) May 11, 2026 Tokyo trading saw the stock drop 8.4% to close at 7,020 yen—marking the lowest valuation since August of last year. Year-to-date, the stock has declined 34% in 2026. Nintendo Co., Ltd., 0R1E.L Operating profit for the fiscal year concluding March 31 climbed approximately 28% to reach 360 billion yen, supported by net sales that nearly doubled. However, these figures fell short of market projections. The company’s projections for fiscal 2027 sparked additional investor unease. Nintendo anticipates operating profit at 370 billion yen, considerably below the analyst consensus of 480 billion yen. Revenue is projected to decline 11.4% to 2.05 trillion yen. Central to investor concerns is the Switch 2 console. The gaming giant expects to move 16.5 million units during the current fiscal period—a notable decrease from the 19.86 million units shipped since the June 2025 launch. Rising Switch 2 Costs Dampen Sales Expectations Last Friday, Nintendo revealed price adjustments for the Switch 2 across major territories including the United States, Japan, and Europe. American consumers face a $50 ...
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