Nintendo's share price took a 12% hit over the weekend following the confirmation of a price hike for the Nintendo Switch 2 set to go into effect this September, but that wasn't the only reason for the double-digit decline. An admittance that Nintendo's biggest titles are taking longer to make, forecasting that Switch 2 sales will actually go on a decline in the next year, and an admittance that memory shortages, tariffs, and longer development cycles for major titles are all major challenges for the company played their part in that stock decline. But president Shuntaro Furukawa isn't phased.
During the Q&A portion of Nintendo's full-year financial results, Furukawa acknowledged some of the challenges Nintendo is facing, like how tariffs and continued memory shortages will make it more difficult for Nintendo to be profitable with its hardware sales going forward. "As we have explained previously, rising prices for memory and other components did not have a major impact on hardware profitability last fiscal year. However, we expect price increases to continue, and from this fiscal year onward we believe they will gradually become a factor putting pressure on hardware profitability."
Firstly, it should be noted that Furukawa is not talking about Switch 2 price increases continuing, but the price of components continuing to increase. The expectation that components will continue to go up in price was also a core reason Nintendo ultimately decided to raise the price of the Nintendo Switch 2, as many have expected the company to do for months now. "We believe the recent increases in component prices, especially in memory, as well as exchange-rate fluctuations and oil price trends, are likely to continue over the medium to long term," Furukawa said.
Continuing with the challenges Nintendo faces, Furukawa also admitted that the development timeline for its games has increased despite the company's continued efforts to develop games "in a timely manner." Which, it should be noted, isn't a problem local to just Nintendo, as every major publisher grapples with how to deliver high-quality games in a shorter time period.
Lastly, though sales for the Nintendo Switch 2 were incredibly strong last year and went unaffected by memory shortages, as Furukawa stated, Nintendo still forecasted a decline in sales for its next fiscal year. In the face of all of this though, Furukawa isn't phased for a few key reasons.
The long and short of it is that while Nintendo has several major challenges ahead of it, the fact remains that "Nintendo Switch 2 is being adopted at a faster pace than Nintendo Switch, and at this point we have no particular concerns about losing momentum," Furukawa said. Switch 2 sales were "more concentrated in the launch year in comparison to previous hardware systems," the company noted in its full-year presentation.
So even if sales for the Switch 2 do decline as forecasted, Nintendo already has more players than expected on its new device. And while a price hike will make the console more inaccessible to users that haven't made the jump yet, Furukawa believes in the software lineup to push people over the edge, as the company has already seen happen with titles like Pokémon Pokopia.
"The fact that Pokémon Pokopia contributed to hardware sales reaffirmed for us that having software people genuinely want to play is a key factor in encouraging migration to Nintendo Switch 2," Furukawa said. "We have many new titles planned for Nintendo Switch 2 going forward, and we intend to carefully communicate the appeal of each title so customers can transition to Nintendo Switch 2 at the timing that suits them best."
Furukawa also called out the success of Tomadachi Life: Living the Dream, as 40% of its install base is players who are on a Switch 2. "We believe the release of these new titles has helped increase activity across both hardware platforms."
Yes, it's worth pointing out that Pokémon is arguably the most recognizable brand in the world, so it's not surprising that new, well-received games in the franchise are selling well and helping to move Switch 2 units. But it's still a clear sign that, with strong exclusive titles, even with the increasing cost of essential items that we've seen ahead of the Switch 2's launch and even within the last year, people will pull the trigger on the new console for the right game.
For many, that was Pokopia. It could also be the upcoming Pokémon Winds & Waves for many more. The next 3D Mario game, the next Zelda game will likely also do what Pokopia did for the Switch 2 in its launch year. Nintendo's stock may have been taking hits for a while now, but the future certainly still looks quite bright for the company, even in this challenging time.
About the author: David has been writing about videogames, technology, and culture since 2020, with a focus on reporting daily news across multiple publications, including GameDaily.Biz, GameSkinny, and PlayStation Universe before joining Wccftech in 2025. David started contributing as Canada/US reporter for Wccftech's gaming section in 2025. Besides being up-to-date on the industry's movements, he loves interviewing developers, reviewing games, and writing intricate essays about the symbolism and layered meanings to be found in rich narratives as he's done for publications like GamesIndustry.Biz, LostInCult, and others. Outside of games he loves movies, music, theatre, his hometown, and his family, though not necessarily in that order.
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