Shares of Nintendo, Japan's leading gaming company, plummeted by as much as 9% at the opening of the Nikkei today (the 11th).

The decline is attributed to the company's consolidated financial results for the fiscal year ending March 2026 (FY2026, April 2025–March 2026), announced on the 8th, which fell short of market expectations, along with disappointing guidance. Nintendo reported consolidated revenue of ¥2.313 trillion (approximately KRW 21.7 trillion) and an operating profit of ¥360.1 billion, representing year-on-year increases of 98.6% and 27.5%, respectively.

However, despite the improved performance, it was the future outlook that significantly dampened investor sentiment. Although Nintendo provided an operating profit guidance of ¥370 billion for the current fiscal year, the market viewed both the results and the forecast as underwhelming. Consequently, Nintendo's stock price tumbled and is currently trading down by about 7%.

Nintendo's conservative guidance is rooted in the expectation that supply shortages for memory semiconductors and other components will persist for the time being. Compounded by rising memory semiconductor costs, the price of its flagship console, the Nintendo Switch 2, has been increased, raising concerns about a potential slowdown in sales.

In fact, Nintendo announced on its official website news channel on the 8th that it would raise the prices of both the Nintendo Switch 1 and Nintendo Switch 2 by approximately ¥10k.

Meanwhile, since its global launch on June 5, 2025, the Nintendo Switch 2 has faced criticism for a lack of exclusive titles capable of driving console sales. While 'Pokopia' recently provided a temporary boost in sales, it was deemed insufficient compared to blockbuster titles like The Legend of Zelda series. Given this situation, the price hike has fueled further concerns that sales momentum may continue to slow.