Finance
Nintendo shares slide 10% as momentum fears grow
Published by Global Banking and Finance Review
Posted on February 4, 2026
2 min readLast updated: February 4, 2026
Quick Summary
Nintendo shares fell 10% as investors worry about Switch 2's momentum and rising memory chip prices affecting future profitability.
Nintendo shares slide 10% as momentum fears grow
Nintendo's Market Performance and Future Outlook
TOKYO, Feb 4 (Reuters) - Nintendo shares slid 10% on Wednesday as investors fretted about momentum for its flagship Switch 2 gaming device.
Sales Performance of Switch 2
The Kyoto-based gaming company on Tuesday reported robust sales for the Switch 2 during the year-end shopping season, though the system is viewed as lacking high-profile game titles to drive demand.
Investor Sentiment and Market Reactions
The "Super Mario" maker maintained its annual earnings and hardware forecasts, which were viewed as having disappointed the market.
Impact of Rising Memory Chip Prices
"Results are good with (the Switch 2) breaking records" but "not great," Jefferies analyst Atul Goyal wrote in a client note.
Investor enthusiasm over the prospects for a successor to the wildly popular Switch helped push shares to a record high last year, but they have been sliding since November.
Early momentum for the Switch 2, which launched in June, is viewed as critical for building a user base to ensure the long-term strength of the system.
"The run is just starting and the platform is growing rapidly," Goyal wrote.
Nintendo extended the life of the original Switch with blockbuster titles including two major entries in "The Legend of Zelda" franchise.
Investors are also concerned about what impact rising prices of memory chips will have on Nintendo's margins.
The company said the price surge is not significantly impacting earnings this financial year, but could pressure profitability if high prices persist over the long term.
(Reporting by Sam Nussey; Editing by Thomas Derpinghaus)
Key Takeaways
- •Nintendo shares dropped 10% due to investor concerns.
- •Switch 2 sales were strong but lacked high-profile titles.
- •Investor sentiment was disappointed by earnings forecasts.
- •Rising memory chip prices could affect future profitability.
- •Switch 2's early momentum is crucial for long-term success.
Frequently Asked Questions about Nintendo shares slide 10% as momentum fears grow
1What is investor sentiment?
Investor sentiment refers to the overall attitude of investors toward a particular security or financial market. It is often influenced by news, economic indicators, and market trends.
2What is market performance?
Market performance measures how well a financial market or security performs over a specific period, often assessed through price changes, trading volume, and investor activity.
3What are high-profile game titles?
High-profile game titles are popular and highly anticipated video games that attract significant attention from gamers and investors, often influencing sales and market performance.
4What are memory chips?
Memory chips are electronic components used in devices to store data temporarily or permanently. They are crucial for the performance of gaming consoles and computers.
5What is a trading platform?
A trading platform is software that allows investors to buy and sell financial securities, providing tools for analysis, order execution, and account management.
