Nintendo shares dropped 10 percent in Tokyo trading on May 11, 2026, following the company's release of disappointing financial forecasts for its upcoming Switch 2 console. The decline marks the lowest point for the company's stock since August 2024. Shares have fallen 30 percent year-to-date, reflecting investor concerns over infrequent game launches and rising hardware costs.
Shares drop as memory costs and infrequent releases weigh on investor confidence
Analysts forecast that Nintendo will sell 16.5 million Switch 2 units and 60 million software titles. The company expects to incur a loss of 100 billion yen, approximately 640 million dollars, due to increasing memory chip costs. These figures highlight the financial pressure Nintendo faces as it prepares to launch its next-generation hardware.
Amir Anvarzadeh of Asymmetric Advisors noted that the company is experiencing a weaker pull from its franchises. Nintendo President Shuntaro Furukawa promised that the company will deliver a robust Switch 2 lineup to offset concerns about price increases. Investors will focus on the summer game lineup, which analysts suggest could help boost investor confidence in the near future.
The stock performance reflects broader market skepticism regarding Nintendo's ability to maintain momentum without frequent major releases. The projected hardware sales of 16.5 million units fall short of the massive success seen with previous generations. Rising component costs further compress margins, making the upcoming software catalog critical for financial recovery.
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