Nintendo’s stock price has fallen approximately 45% since its peak in August 2025. Investors cite growing anxiety regarding the profitability of the Switch 2 console.
Surging costs for DRAM and NAND flash memory are the primary drivers of this decline. Increased demand from the AI and data center industries has inflated these component prices. These market dynamics are currently squeezing Nintendo’s hardware margins.
Management must now choose between absorbing higher costs or increasing the Switch 2 retail price. Investors worry a price hike could dampen sales of the recently launched device. Conversely, lower margins may negatively impact Nintendo’s overall financial performance and market value.