Nintendo’s shares fell by almost 10% on the Tokyo Stock Exchange on Monday. The drop followed the company’s announcement on Friday in its latest annual report that sales of consoles and games are expected to slow. The Switch 2 will also become more expensive. Nintendo expects to sell 16.5 million Switch 2 units this financial year, compared with 19.86 million in the previous year. In addition, it expects to sell 60 million games.
Friday’s announcement had an impact on the Japanese entertainment company. At the close of Asian trading, Nintendo’s shares stood at 7,020 Japanese yen (around €37.96 euros), a fall of 8.44%. So far this year alone, Nintendo’s share price has plummeted by more than 30%.
The cost of console components is rising. Due to the worldwide surge in artificial intelligence, demand for memory chips has soared. This is affecting Nintendo, as well as other gaming companies. On top of that, higher US import tariffs and shipping costs are adding further pressure. As a result, Nintendo was forced to raise prices for the Switch 2, which was released nearly a year ago. The price of the Switch 2 will rise on 1 September from €469.99 to €499.99.
Nintendo is not the only entertainment player that has been forced to raise its prices because of the chip crisis. Xbox and PlayStation products have also become more expensive over the past year. The PlayStation 5 suddenly became €100 more expensive. Sony, the maker of PlayStation, benefited today from its rival’s setback. The company saw the value of its shares rise by 8.29% during the Asian trading session.
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