Nintendo is facing escalating challenges as its stock value has further declined after announcing a price increase for the Switch 2. The company is experiencing its worst stock market performance in recent history, a situation exacerbated by the decision to raise the price of the Switch 2. This price adjustment was actually a suggestion from investors who aimed to increase per-console profits and positively impact the company’s stock value. However, the outcome has been the opposite. Now, not only are fewer consoles expected to be sold, but Nintendo’s stock value has also depreciated further.
The primary catalyst for Nintendo’s 8.4% stock drop has been the price revision. In Japan, the Nintendo Switch 2 will see its price increase from 49,980 to 59,980 yen (approximately €270 to €324) starting May 25, 2026. In the United States, the console’s price will rise from $449.99 to $499.99 (approximately €382 to €425) on September 1. Similarly, in Europe, the price will go from €469.99 to €499.99 on the same date. The slightly lower price increase in the US and Europe does not negate the fact that prices are still rising. Notably, in Europe, consumers are paying more to offset increased tariffs towards the US, and despite this, prices have still been raised.
Even Raising Switch 2 Prices Can’t Stop Nintendo’s Stock from Sinking
Nintendo is grappling with two primary issues. Firstly, it possesses a large and family-oriented user base, which is traditionally more sensitive to price increases than the general consumer market. Secondly, the company’s game catalog is perceived as lacking. The market is missing major, high-impact releases that could sustain interest in the console. This is despite the decent performance of games like Pokémon Pokopia, which appeals primarily to a niche audience interested in Pokémon titles. Nintendo has cited upcoming releases such as Yoshi and the Mysterious Book, Star Fox, and Splatoon Raiders, along with third-party support. However, for investors, this is apparently insufficient. They are demanding a ‘console-selling game,’ especially now that prices have increased.
Comparisons with Sony also work against Nintendo. While Nintendo heavily relies on its video game business, Sony is more diversified. Furthermore, Sony’s stock rose by 10% in Tokyo after announcing higher profit forecasts in gaming and a joint venture with TSMC in Japan for image sensors.
Curiously, Nintendo’s stock value is plummeting even though the company is financially robust. Nintendo nearly doubled its annual sales to 2.313 trillion yen, increasing its operating profit by 27.5%. Net profit attributable to owners of the parent also saw a significant rise of 52.1%. The issue, however, is that the market is not penalizing past performance but rather the uncertainty surrounding the Switch 2’s second year. This year is anticipated to be poor in terms of sales, a prospect made worse by the console’s price increase. Consequently, the market views the price hike not as a way to boost profits, but as an additional burden that will further reduce console sales.
