Nintendo's stock price fell

Concerns about rising hardware costs continue to sow unease among video game investors, with some shocked Nintendo stock prices took a big hit, falling just under 11% shortly after Nintendo released an impressive earnings report. The drop reflects growing discontent across the gaming industry, as the ram and SSD impacts have raised concerns among shareholders and the public about console price hikes. While Nintendo has successfully launched the Switch 2 and its exclusive games, investors seem to be hesitant about the coming months, though fans may not want to jump to conclusions, at least for now.

Concerns about the console's hardware costs stem from an announcement by Micron, one of the largest RAM and SSD manufacturers, which revealed that the company will end consumer sales of its memory and storage products to focus solely on sales to AI data centers and enterprises. That leaves only the two top manufacturers that make these vital hardware components found in all PCs and video game consoles, and the resulting fear of massive price hikes. Both Microsoft and Sony have already announced price hikes for the Xbox and PlayStation systems, and despite comments from Nintendo about possible Switch 2 price hikes seemingly allaying any concerns so far, investors remain hard-pressed to see what the future may hold for Switch 2 and Nintendo stock values.

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Why did Nintendo's stock price just drop?

Nintendo has shared its fiscal 2026 Q3 earnings report, which shows big sales growth for the Switch 2 and games like Mario Kart World and Donkey Kong Bananabut shareholders responded less than enthusiastically, selling off shares and reducing Nintendo's market value. Nintendo's stock price closed at ¥8,973 in late trading on February 4th in Japan, down 10.98% from the previous day's trading and ahead of the earnings report. A negative move might seem confusing to Nintendo fans, but it's actually a fairly common occurrence in the financial world. Investors don't just look at current data from previous fiscal periods, but instead prioritize future potential for market activity. Despite Nintendo's profitability over the past few months, the lack of announcements about new first-party games and the volatility of the gaming hardware market have investors worried about Nintendo's upcoming fiscal year.

It's worth noting that investors and the public recently witnessed an all-time high stock price for Nintendo following the launch of the Switch 2, so it was only a matter of time before stock values fell back to a moderate, even price. Stock values of video game companies often fluctuate in response to a number of variables, including but not limited to broader economic changes such as tariffs, political tensions that affect consumer sentiment, and changes in related industries such as the RAM and SSD crisis. While investors will analyze these various variables and extrapolate predictions that then affect their money movements, fans may not want to focus too much on these changes.

Place 9 games in the grid.

Investors have previously sold shares and pushed down Nintendo's stock price in the slow lead up to the eventual reveal of the Switch 2, only for prices to skyrocket after the console's announcement. With many expecting the main Nintendo Direct to arrive in February, along with a confirmed third-party Direct on February 5th, any big announcements could quickly push the stock price back to previous levels or even higher, depending on fan reaction and adjusted earnings speculation. Therefore, the audience may want to avoid looking too deeply into the ever-changing stock prices of a large company such as Nintendoalthough it is worth acknowledging the fears and predictions that lead investors to these often unexpected decisions.