Nintendo shares fall on price hikes and game concerns
Nintendo shares fell 8 percent in Tokyo after the company announced price increases for the Switch 2 and issued a conservative software outlook. Investors are concerned about a lack of blockbuster titles despite analysts suggesting a major Mario release could arrive later this year.
NINTENDO CO LTD shares fell 8% in Japan on Monday following Switch 2 price hikes and a weak game pipeline. The Kyoto-based firm raised the console's price by 10,000 yen to 59,980 yen amid rising memory chip costs. Investors fear higher costs and a lack of blockbuster titles will stall momentum for the console.
Nintendo posted robust hardware sales for the financial year ended March, but the company's outlook for the current year underwhelmed the market. The firm will increase Switch 2 prices in its home market starting May 25, with prices in the United States rising beginning September 1. Electronics makers face a surge in memory chip prices, forcing the hardware adjustment.
