tech
Nintendo plunges 8% after Switch 2 price hike and weak sales forecast
Investors are concerned about Nintendo's outlook of lower Switch 2 sales in the current fiscal year, driven by price increases for the console.
TL;DR
- Nintendo's shares closed 8.4% lower in Tokyo following an announcement of price hikes for the Switch 2 console.
- The price increases are attributed to the surge in memory chip costs driven by the AI infrastructure boom.
- Nintendo forecasts 16.5 million unit sales for the Switch 2 in the current fiscal year, down from previous estimates, raising investor concerns.
- Analysts suggest Nintendo's guidance might be conservative and expect actual sales to exceed forecasts.
- Software sales are also predicted to fall year-on-year, but some analysts are optimistic about user engagement and future game releases.
- Upcoming games like 'Mario Kart World' and the viral hit 'Pokémon Pokopia' have seen early success on the Switch 2.
- Investors are awaiting announcements regarding Nintendo's future game pipeline, particularly for iconic characters like Mario and Zelda.