The rising cost of memory and storage components is weighing on electronics brands like Nintendo and fellow games console maker Sony Group Corp as they also navigate tariffs, high shipping costs and lacklustre discretionary spending. But Nintendo has yet to recreate the huge game sales of the original Switch’s early days.
(May 11): Nintendo Co’s shares plunged the most in three months after the company forecast hardware and software sales declines and warned that the soaring cost of memory chips was hitting margins.
The Kyoto-based games maker on Friday released a surprisingly downbeat projection of 16.5 million sales of its Switch 2 console this fiscal year, accompanied by 60 million software copies. The company’s stock price fell 10% in Tokyo on Monday to its lowest since August 2024, when sales momentum for the original Switch decelerated.
