Nintendo Shares Drop After Profit Warning

May 11, 2026

62 min

May 11, 2026 02:30

Nintendo shares plunge after profit warning

## Nintendo's Financial Outlook

Nintendo's shares experienced a significant drop of nearly 10% following a profit warning. The company announced a projected 27% decline in net profit for the current financial year. This announcement comes amid plans to increase the price of its Switch 2 console.

## Impact of Price Hike

The price of the Switch 2 will rise by 20% in Japan starting May 25, and by 11% in the United States from September 1, reaching $499.99. In Europe, the price will increase by 6% to 499.99 euros. Analysts suggest that these hikes may deter price-sensitive consumers, especially given the current economic climate.

## Challenges Facing Nintendo

Nintendo's challenges are compounded by a weaker lineup of new games compared to previous years. Additionally, the rising cost of memory chips, driven by the artificial intelligence boom, is affecting production costs. Supply chain disruptions linked to geopolitical tensions have further complicated matters.

## Recent Performance

Despite these challenges, Nintendo reported a 52% increase in net profit last year, reaching 424 billion yen, with annual sales of 2.31 trillion yen. The company sold 19.86 million units of its new console by the end of March, bolstered by popular titles like "Pokemon Pokopia" and "Mario Kart World."

Read the full story at the source

What you need to know to get Emirates ID?

Leave your details and get a guide as a gift to avoid mistakes

Article contents