Nintendo stock plunges further on weak outlook

Following the announcement of its financial results late last week, Nintendo's stock price has plummeted by over 7 percent. This continues the company's downward trend, which was only briefly cushioned by the successful release of “Pokémon Pokopia.” Over the past year, Nintendo's stock has now fallen by over 48 percent.

Investors are likely most concerned about Nintendo's hardware outlook. Under pressure from the memory crisis, tariffs, and disrupted supply chains, Nintendo has announced a price increase for the Switch 2. The recommended retail price for the handheld console in Europe is set to rise from 470 to 500 euros, while in the US, the price will increase by 50 US dollars to 500 US dollars. In its home market of Japan, Nintendo is also raising the recommended price for the first-generation Switch.

Microsoft and Sony have also long since increased the prices of their consoles. However, the price hike could particularly harm Nintendo, reports Reuters: A significant portion of Nintendo's target audience consists of casual gamers who might refrain from purchasing a Switch 2 at the current prices.

Declining Switch 2 sales expected

For the current fiscal year, Nintendo expects to sell only 16.5 million Switch 2 consoles – a decrease of 17 percent compared to the previous year, when 19.9 million units were sold.

In the past quarter ending March 2026, Nintendo sold only 2.49 million Switch 2 units. The company assesses the market penetration of the console, released almost a year ago, as “solid” in its business report. Nintendo now intends to compensate for lost hardware sales revenue with stronger software sales. However, Nintendo has not yet announced any major releases in its key franchises like “Mario” and “Zelda.”

(dahe)