Nintendo Share Prices Fall by 11 Percent Report of 17 Million Switch 2 Units Sold

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Investors are questioning Nintendo’s recent sales numbers for the Switch 2, despite the company reporting over 17 million units sold. Reuters reports that Nintendo’s stock price dropped 11% following their latest earnings report, and analyst Atul Goyal from Jefferies suggests this is because investors are unsure if the Switch 2 will maintain its current sales pace.

According to Goyal, the Switch 2 is performing well and achieving record sales, though he admits results aren’t yet exceptional. He also points out that the platform is new and experiencing fast growth, suggesting even better performance is likely in the future.

I’ve been reading some analysis, and it seems like things aren’t quite as explosive for the new Switch as they were with the original. An analyst named Amir Anvarzadeh pointed out that software sales haven’t been as strong this time around, which is a little concerning. He basically said the new console isn’t moving software at the same rate as the first Switch did.

The recent drop in share prices could suggest broader concerns about the console market. According to Morningstar analyst Kazunori Ito, console profits are expected to fall next year because of continually rising memory costs.

Nintendo recently announced that the Switch is now its best-selling console of all time, with over 155 million units sold worldwide. This means it has overtaken the Nintendo DS, which previously held the record at 154 million. The company also shared that Mario Kart World, the latest game in the popular racing series, has sold more than 14 million copies as of December 31st, including those sold as part of Nintendo Switch 2 bundles.

Experts are forecasting that the upcoming Switch 2 could become more expensive. This is likely due to a worldwide shortage of memory chips, which has significantly increased the cost of RAM. The research firm Niko Partners highlighted this possibility in their recent report on the future of the gaming industry, predicting it could happen by 2026.

Nintendo has seen success with the Switch 2’s lower price compared to PlayStation 5 and Xbox Series X/S. However, the company may need to raise prices in the future, similar to Sony and Microsoft. There’s also a possibility that the standard $449 Switch 2 model will be replaced with more expensive packages.

Nintendo president Shuntaro Furukawa mentioned in January that the company is watching increasing memory costs closely. He explained that Nintendo is being cautious about raising prices and will wait to see how the market changes. Furukawa also confirmed that production of the next Switch console is currently on track, as Nintendo had already secured the required memory chips.

According to Furukawa, how profitable hardware is depends on things like the cost of getting parts, how much money they save by making a lot of units, and changes in exchange rates and import taxes. He notes that it’s hard to make broad statements about this, but their main goal is to improve how they obtain components in the long run.

We choose our suppliers with our future business goals in mind, but the memory market is currently changing rapidly. We aren’t seeing any financial effects right now, but we’re keeping a close watch on the situation.

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2026-02-04 16:44