Nintendos shares have fallen 10%, their biggest decline in three months, after the company presented a disappointing sales forecast. The company has been on something of a hot streak for a while now, with the Switch 2 outselling its predecessor and games that Pokemon Pokopia and Tomodachi Life: Living the Dream blow up in the air. 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 would happen and raised the price of the Switch 2 worldwide. When the $50 price increase takes effect, it will make the system Nintendo's most expensive console to date, not accounting for inflation. It's an unfortunate turn of events for gamers, and one that could affect the Switch 2's sales going forward as macroeconomic conditions squeeze consumer wallets. It may be too early to tell if and to what extent that will happen, but Nintendo and its investors don't seem too optimistic about the future.
Nintendo's stock price just took a big hit
Nintendo's stock prices are taking a big hit, reflecting ongoing economic volatility for tech-focused markets like the video game industry.
Nintendo shares fall after low sales forecast for fiscal 2027
According to a recent Bloomberg report, Nintendo's stock price fell 10% on the morning of May 11 after Nintendo estimated it would only sell 16.5 million Switch 2 consoles this fiscal year. While that's still a sizable figure, it's a noticeable drop from the blistering pace the console has been selling 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 sales decline to continue throughout fiscal 2027. Selling 16.5 million units would still put the console ahead of the original Switch's first 22-month performance, but the steep decline from fiscal year 2106 million units was 2106 million units. enough to make investors wary.
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Lower than expected sales forecasts may not be the only driving force behind this change. When Nintendo president Shuntaro Furukawa announced plans to increase the Switch 2's ownership value after raising the price, he also mentioned that the price increase does not fully cover rising production costs. That means the RAM crisis and other supply chain costs are squeezing the Switch 2's margins. So it should come as no surprise that the combination of lower sales and less profit per console would spook investors.
Whatever the reason, Nintendo's share price is now at its lowest level since August 2024. Major gaming companies such as Nintendo and Sega suffered major share price losses that month as console sales sputtered and the global economy as a whole put pressure on industries. Suffice it to say, it's not exactly a favorable comparison for Nintendo or its investors. The company came out of the 2024 rut to reach all-time highs, but those highs came after the launch of the Switch 2, 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. The rumor Legend of Zelda: Ocarina of time remake seems increasingly likely, and Furukawa's statements about increasing the Switch 2's value through his games could mean that there are big plans afoot. Only time will tell what these are or what kind of effect they will have, but any boost could benefit Nintendo for now.
Source: Bloomberg
