Nintendo's shares fell 7.5% on Wednesday after the company's Nintendo Direct presentation of forthcoming games lacked titles from top franchises such as "Super Mario".
Nintendo said Monday that it would pay a fine of 35 million euros ($40 million) to settle a French claim over faulty controllers on its Switch consoles.
Nintendo's Switch 2 has proven demand, selling nearly 20 million units and becoming the company's fastest-selling console launch ever. Investors are focusing on slowing hardware growth while overlooking Nintendo's expanding ecosystem and software monetization strategy. Nintendo continues to report strong software momentum, rising digital sales, and healthy engagement across its 129 million annual playing users.
Shares of Nintendo closed 8.4% lower in Tokyo, to 7,020 yen, the lowest since August 2024. Investors are concerned about Nintendo's outlook for lower Switch 2 sales in the current fiscal year, driven by price rises for the console amid higher memory costs.
If you've been debating whether or not to pick up a Nintendo Switch 2 then you'll want to act soon.
Japanese exporters are having to cope with President Trump's tariff hikes and other higher costs that have been worsened by the war in Iran.
It's not a matter on if it would happen, only a matter of when.
In March, Sony announced it was hiking the prices of its PlayStation 5 family of consoles by between $100-$150. The PlayStation 5's cheapest model—the Digital Edition with no disc drive— now costs $599.99, while the version with the disc drive costs $649.99.
The videogame maker's net profit rose 52% for the year ended March.
Nintendo hikes Switch 2 prices and expects console sales to decline as memory crunch bites
Nintendo Co., Ltd. is a buy, as the market underestimates the company's long-term durability and legendary IP. NTDOY's fortress balance sheet, 33% ROIC, and first-party IP-driven ecosystem give it competitive advantages within its sector and support ongoing shareholder returns. Q3 FY 2026 saw Switch 2 record-breaking sales, strong game software performance, and successful movie expansion that highlight Nintendo's resilient and growing franchise demand.
The proposed class action lawsuit says the company stands to benefit twice from the now-voided import duties.