NintendoShares fell 10% after the company released a disappointing sales forecast, its biggest drop in three months. The company has been on a hot streak for a while now, with the Switch 2 just like its predecessor and games Pokemon Pokopia and Tomodachi Life: Living the Dream blowing up Now, though, things are looking a little bleak for Nintendo, and investors aren't impressed with what they've seen lately.
On May 8, Nintendo confirmed to many what was going to happen and raised the price of the Switch 2 worldwide. When the $50 price increase is applied, it makes the system Nintendo's most expensive console to date, not accounting for inflation. It's an unfortunate turn of events for gamers, and it could impact Switch 2 sales as macroeconomic conditions squeeze consumers' wallets. It may be too early to tell if and to what extent this will happen, but Nintendo and its investors don't seem all that optimistic about things going forward.
Nintendo stock price just took a big hit
Nintendo stock prices take a big hit, reflecting continued economic volatility for technology-focused markets like the video game industry.
Nintendo shares fall after lower sales forecast for fiscal 2027
According to a recent Bloomberg report, Nintendo's stock price fell by 10% on the morning of May 11 after Nintendo projected that it would only sell 16.5 million Switch 2 consoles this fiscal year. While that's still a significant number, it's a significant drop when compared to the blistering pace at which the console has sold up to this point. Despite a record-breaking start, Switch 2 sales fell behind PS5 in the first two months of 2026, and now Nintendo expects this relative decline in sales to continue into fiscal 2027. Selling 16.5 million units would still put the console ahead of the original Switch's performance in its first 22 months, but steeply from 2026's 1968 steepline. A million units was enough to make investors aware.
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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 raise the cost of ownership of the Switch 2 after raising its price, he also noted that the price increase would not fully cover rising production costs. That means the RAM crisis and other supply chain expenses are tightening the Switch 2's margins. So, it should come as no surprise that the combination of low sales and low profit per console should scare investors away.
Whatever the reason, Nintendo's stock price is at its lowest point since August 2024. Major gaming companies such as Nintendo and Sega suffered huge stock price losses that month as console sales fell and the global economy put pressure on entire industries. Suffice it to say, it's not exactly a favorable comparison for Nintendo or its investors. The company came off the 2024 route to reach all-time highs, but those highs came after the launch of the Switch 2, so Nintendo's software will have to do some heavy lifting to get things back to where they were.
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Nintendo may still have a trick or two up its sleeve. noise The Legend of Zelda: Ocarina of Time A remake seems increasingly likely, and Furukawa's statements about increasing the Switch 2's value through its games means there are big plans in store. Only time will tell what these are or what kind of impact they will have, but any lift could benefit Nintendo at this time.
Source: Bloomberg
