Nintendo’s share price plunges 33% in Japan amid Switch 2 concerns

Nintendo’s stock in Japan has fallen 33% over the past five months, dropping from a record high of ¥14,795 in August 2025 to ¥9,950 as of early January 2026. This decline follows strong initial sales of the Nintendo Switch 2, launched in June 2025, but has been fueled by multiple headwinds affecting investor confidence. Rising RAM and memory chip costs have raised fears of squeezed profit margins and potential consumer price hikes for the Switch 2. Trade tariffs, particularly in the US, add further pressure, with President Shuntaro Furukawa noting the volatile memory market but stating no immediate earnings impact. Weaker-than-expected holiday sales during Christmas 2025 contributed, despite the console outselling its predecessor overall, alongside concerns over a lack of major first-party “killer app” titles like new Mario or Zelda games. The drop follows a massive pre-2025 surge, with shares still up 9% year-over-year and far above historical levels like ¥2,400 at the original Switch launch. Rivals face similar issues: Sony down 22%, Ubisoft 31.7%, amid a tough 2025 economy. Online discussions view the dip as a buying chance for a “cheap premium stock,” with speculation on Saudi investors repurchasing shares or expanding in gaming. Critics call it ragebait, citing new titles like Mario Kart, Donkey Kong, Kirby Air Riders, Pokémon, and Metroid Prime, yet question if audiences now prioritize only Mario and Zelda. Nintendo remains profitable on Switch 2, but sustained issues could deepen the slide without fresh catalysts.

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