NintendoShare prices fell 10%, the steepest decline in three months, after the company released a disappointing sales forecast. The company has been on a bit of a hot streak for a while now, with the Switch 2 outselling its predecessor and games like Pokemon Pokopia and Tomodachi Life: Living the Dream blow up. Now, however, things are looking a little shakier for Nintendo, and investors aren't impressed with what they've seen lately.
On May 8, Nintendo confirmed what many feared and raised the price of the Switch 2 worldwide. When the $50 price hike takes effect, the system will become Nintendo's most expensive console to date, adjusted for inflation. This is an unfortunate turn of events for gamers that may impact future Switch 2 sales as macroeconomic conditions squeeze consumer wallets. It may be too early to tell if and to what extent this will happen, but Nintendo and its investors don't seem too optimistic about things to come.
Nintendo's stock price just took a big hit
Nintendo's stock prices have taken a big hit, reflecting continued economic volatility in technology-focused markets such as the video game industry.
Nintendo shares fall after low sales projections for fiscal 2027
According to a recent Bloomberg report, Nintendo's stock price fell 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 significant number, it's a noticeable drop compared to the lightning pace the console has been selling up to this point. Despite a record-breaking start to sales, the Switch 2 fell short of the PS5 in the first two months of 2026, and Nintendo now expects this relative sales decline to continue throughout fiscal 2027. Sales of 16.5 million units would still put the console ahead of the original Switch's first 22-month performance, but the steep drop from 026 sufficient fiscal years to 2 million investors was 8 million 16 wary.
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Lower-than-expected sales projections may not be the only driver of this shift. When Nintendo president Shuntaro Furukawa announced plans to increase the Switch 2's ownership value after raising its price, he also mentioned that the price increase does not fully cover rising production costs. That said, the RAM crunch and other supply chain expenses are squeezing the Switch 2's margins. So it shouldn't be a surprise that the combination of lower sales and lower profit on the console would spook investors.
Regardless of the cause, Nintendo's stock price is now at its lowest point since August 2024. Big game companies like Nintendo and Sega have suffered big share price losses this month as console sales sputter and the global economy as a whole puts pressure across industries. Suffice it to say, it's not exactly a favorable comparison for Nintendo or its investors. The company broke out of the rut of 2024 to reach all-time highs, but those highs didn't come until after the Switch 2 launch, so Nintendo's software will likely have to do some heavy lifting to get things back to where they were.
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Nintendo may still have an ace or two up its sleeve. It is said The Legend of Zelda: Ocarina of Time a remake seems increasingly likely, and Furukawa's statement about increasing the value of the Switch 2 through games could mean that big plans are in store. Only time will tell what those are or what effect they will have, but any lift could benefit Nintendo at this point.
Source: Bloomberg
