The stock of Nintendo (NTDOY) is down 10% on May 11 after the Japanese video game maker announced that it is raising the price of its flagship Switch 2 console.
The price increase was announced as management at the video game giant warned that sales of the Switch 2 would likely decline this year.
However, executives at Nintendo said the price hike is necessary to help offset the rising costs of memory chips, which are in short supply globally.
The latest decline in Nintendo’s stock comes after the company’s share price has already fallen 34% in 2026.
Nintendo said it is struggling with soaring memory chip costs, which have been driven by the A.I. infrastructure boom.
The company now forecasts 16.5-million-unit sales of its Switch 2 console this year, down from an earlier forecast of 19.86 million units.
The price of the Switch 2 console has been raised by $50 in the U.S., and by 10,000 Japanese yen ($64) in Japan.
Nintendo has had success with Switch 2 games such as “Mario Kart World” and “Pokémon Pokopia,” which sold over four million units in the five weeks after its release this March.
However, analysts and investors are waiting to hear more on Nintendo’s video game pipeline and when it will release games involving more of its iconic characters such as Mario and Zelda.
NTDOY stock is currently trading at $10.45 U.S. in New York.
