nintendoShares fell 10%, the biggest drop in three months, after the company issued disappointing sales forecasts. The company has been on a hot streak for some time, with the Switch 2 outperforming its predecessor and games like the following. Pokemon Pokopia and Tomodachi Life: Making Dreams Come True blasting. But now things look a little more shaky for Nintendo, and investors are unimpressed with what they've seen recently.
On May 8, Nintendo confirmed what many feared would happen and raised the price of the Switch 2 globally. Once the $50 price increase goes into effect, this system will be Nintendo's most expensive console to date, even without accounting for inflation. This is an unfortunate event for gamers, and one that could impact Switch 2 sales going forward as the macroeconomic situation puts pressure on consumers' wallets. It's too early to tell whether or to what extent that will happen, but Nintendo and its investors don't seem all that optimistic about what lies ahead.
Nintendo stock took a huge hit.
Nintendo stock has taken a huge hit, reflecting continued economic volatility in technology-driven markets like the video game industry.
Nintendo shares fell after low sales forecasts for fiscal 2027.
Nintendo's stock price fell 10% on the morning of May 11 after the company expected to sell only 16.5 million Switch 2 consoles this fiscal year, according to a recent Bloomberg report. That's still a respectable number, but it's a notable decline compared to the breakneck pace the console has been selling at so far. Despite a record start, Switch 2 sales lagged behind the PS5 in the first two months of 2026, and Nintendo now expects this relative decline in sales to continue throughout fiscal 2027. Selling 16.5 million units would put the console ahead of the original Switch's performance in its first 22 months, but the steep decline from 19.86 million units in fiscal 2026 was enough to make investors wary.
Who is that character?
Check out the silhouette before time runs out.
start
Check out the silhouette before time runs out.
Easy (7.5 seconds) Medium (5.0 seconds) Hard (2.5 seconds) Eternal Death (2.5 seconds)
Lower-than-expected sales forecasts may not be the only driving force behind this change. Nintendo President Shuntaro Furukawa announced plans to increase the value of ownership by raising the price of the Switch 2, noting that the price increase does not fully cover the increase in production costs. This means Switch 2's margins are being squeezed due to the RAM crisis and other supply chain costs. So it's no surprise that the combination of declining sales and declining revenue per console is spooking investors.
Regardless of the cause, Nintendo's stock price is currently at its lowest point since August 2024. Major gaming companies like Nintendo and Sega suffered big stock price declines that month as console sales slumped and the global economy put pressure on the industry as a whole. That being said, this is not a favorable comparison for Nintendo or its investors. The company broke out of the rut in 2024 and hit an all-time high, but that high came after the launch of the Switch 2, so Nintendo's software will have to do some heavy lifting to get things back where they were.
New questions added!
GameRant Quiz
start
Easy (15 seconds) Medium (10 seconds) Hard (5 seconds) Eternal Death (5 seconds)
Nintendo may still have an ace. rumor The Legend of Zelda: ocarina of time The possibility of a remake is looking more and more likely, and Furukawa's comments about increasing the value of the Switch 2 through games could mean that big plans are in store. Only time will tell what this is and how effective it will be. But any lift could help Nintendo at this point.
Source: Bloomberg
