PREVIEW

Nintendo Shares Tumble After Switch 2 Price Hike and Weak Sales Forecast. Nintendo shares fell sharply after the company announced higher prices for the Switch 2 console and forecast weaker sales for the coming fiscal year. The company now expects to sell 16.5 million Switch 2 units by March 2027, down from nearly 20 million units sold during the previous year. The Japanese giant also warned that rising memory chip prices and U.S. tariffs would increase costs and reduce profits, adding pressure to its gaming business. The Switch 2 price will rise in several markets, including the United States, where the console will increase from $450 to $500 starting in September. Analysts said investors were also disappointed by Nintendo’s cautious outlook for game releases, with concerns growing over the lack of major blockbuster titles in the near future. Despite the weaker forecast, demand for the console remains strong in some regions, with reports of long queues in Japan and many retailers quickly selling out of stock. Nintendo is more exposed to gaming market swings than rivals such as Sony because the company depends heavily on its console and software business. Overall, rising hardware costs and cautious consumer spending are making it harder to sustain the momentum of new console launches.
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