Profit Warning and Switch 2 Price Hike Cause Nintendo Stock to Plunge Nearly 10%
Nintendo's stock price plummeted nearly 10% today after the Japanese gaming giant warned of a significant profit decline for the current fiscal year and announced a price increase for its Switch 2 console.
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- 📰 Published: May 11, 2026 at 12:33
- 🔍 Collected: May 11, 2026 at 13:02 (28 min after Published)
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Central News Agency
(Central News Agency, Tokyo 11th, comprehensive foreign report) Nintendo's stock price plunged nearly 10% today, mainly because the Japanese gaming giant warned that profits would decline significantly and announced that it would raise the selling price of the Switch 2 console.
Agence France-Presse reported that Nintendo stated on the 8th that it expects its net profit to fall sharply by 27% in the current fiscal year, and analysts pointed out that this is related to the lack of attractive new game lineups.
The artificial intelligence (AI) boom has driven up memory chip prices, not only impacting manufacturers of game consoles and other devices, but the unstable situation related to the Iran war has further exacerbated supply chain problems.
Nintendo stated on the 8th that the price of Switch 2 in Japan will be raised by 20% to 59,980 yen (approximately NT$12,000) starting from May 25; in the United States, the price will be raised by 11% to US$499.99 (approximately NT$15,700) starting from September 1; and in Europe, it will be raised by 6% to 499.99 euros (approximately NT$18,500).
Nintendo's net profit soared by 52% to 424 billion yen last year, with annual revenue reaching 2.31 trillion yen, almost doubling compared to the previous year.
As of the end of March, with hot-selling games such as Pokémon Pokopia, "Mario Kart World," and "Donkey Kong Bananza," Nintendo's new console has accumulated sales of 19.86 million units.
Jefferies analyst Atul Goyal wrote in a report that the second year is "crucial, and our non-market consensus expectation is that Nintendo will release a Mario AAA game this year."
He also said: "The financial forecast threshold is deliberately set low. Nintendo has exceeded its initial operating profit expectations in each of the past four fiscal years." (Compiled by Chen Yu-ting) 1150511
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(Central News Agency, Tokyo 11th, comprehensive foreign report) Nintendo's stock price plunged nearly 10% today, mainly because the Japanese gaming giant warned that profits would decline significantly and announced that it would raise the selling price of the Switch 2 console.
Agence France-Presse reported that Nintendo stated on the 8th that it expects its net profit to fall sharply by 27% in the current fiscal year, and analysts pointed out that this is related to the lack of attractive new game lineups.
The artificial intelligence (AI) boom has driven up memory chip prices, not only impacting manufacturers of game consoles and other devices, but the unstable situation related to the Iran war has further exacerbated supply chain problems.
Nintendo stated on the 8th that the price of Switch 2 in Japan will be raised by 20% to 59,980 yen (approximately NT$12,000) starting from May 25; in the United States, the price will be raised by 11% to US$499.99 (approximately NT$15,700) starting from September 1; and in Europe, it will be raised by 6% to 499.99 euros (approximately NT$18,500).
Nintendo's net profit soared by 52% to 424 billion yen last year, with annual revenue reaching 2.31 trillion yen, almost doubling compared to the previous year.
As of the end of March, with hot-selling games such as Pokémon Pokopia, "Mario Kart World," and "Donkey Kong Bananza," Nintendo's new console has accumulated sales of 19.86 million units.
Jefferies analyst Atul Goyal wrote in a report that the second year is "crucial, and our non-market consensus expectation is that Nintendo will release a Mario AAA game this year."
He also said: "The financial forecast threshold is deliberately set low. Nintendo has exceeded its initial operating profit expectations in each of the past four fiscal years." (Compiled by Chen Yu-ting) 1150511
Choose to stand with facts, every sponsorship you make is a force to protect press freedom.
Download the Central News Agency's "First-hand News" APP to stay updated with the latest news.
The text, images, and audio/video on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.