Nintendo Shares Drop As Switch 2 Price Hike Fails To Calm Investors
Nintendo is having a weird problem right now: the Switch 2 is selling, but investors are still not happy.
According to Kotaku, Nintendo’s share price fell 7% after Japanese markets opened on Monday, May 11, following fresh worries around Switch 2 pricing and the company’s 2026 game lineup. The dip came even after Nintendo announced a price increase for the Switch 2 last week, which was supposed to ease concerns about rising production costs.
The issue? That price bump may still not be enough.
Switch 2 sales are strong, but costs are biting
Nintendo has already announced that the Switch 2 sold 20 million units and 50 million games in its first nine months. For normal people, that sounds like a monster launch. For investors, apparently not enough lah.
The bigger concern is what happens next. Nintendo had already lowered its Switch 2 sales expectations for the coming year, and its share price had reportedly been sliding for five straight months. The new price increase was meant to show that Nintendo could protect its margins, but VGC reported via Kotaku that the increase still does not fully cover the higher cost of making the console.
Nintendo president Shuntaro Furukawa reportedly said the higher price “does not fully account for all cost increases.” The pressure is coming from pricier computer components, partly driven by the current AI hardware race, plus higher oil prices.
For Malaysian and SEA players, this is the part to watch closely. A $50 increase overseas does not always convert cleanly into local pricing, but any global hardware price hike usually creates pressure on importers, retailers, and bundle pricing. If the September increase outside Japan affects regional supply, don’t be surprised if Switch 2 sets, accessories, or grey-market units become more expensive around Malaysia.
Why Nintendo is under more pressure than Sony
Nintendo usually avoids selling consoles at a loss. Sony and Microsoft have historically been more willing to treat hardware as a loss-leader, then make money back through software and services.
That makes Nintendo’s situation trickier. Sony’s share price reportedly jumped 10%, helped by investor confidence that it can sell fewer PS5s but make better margins. Sony also has a much broader business beyond PlayStation.
Nintendo, meanwhile, is much more dependent on games. Yes, it has a share in Pokémon, but its core business is still very much console-and-software driven. If hardware costs rise and first-party game momentum looks thin, investors get nervous fast.
The missing Mario and Zelda problem
The other big headache is Nintendo’s 2026 release calendar.
Pokémon Pokopia has reportedly been a major success, but that is already in the rear-view mirror. Kotaku notes that the next mainline Pokémon game is not expected until 2027, leaving a big gap in Nintendo’s future lineup.
There are still games coming, including a Star Fox refresh, another Splatoon title, and Yoshi and the Mysterious Book. But fair or not, those are not the same as a new 3D Mario or the next major The Legend of Zelda. For a console still trying to prove its long-term software pipeline, silence around those heavy hitters is painful.
FromSoftware’s The Duskbloods is being positioned as a major third-party hope for Switch 2, but Nintendo’s biggest strength has always been its own first-party magic. SEA players know the pattern well: one strong Mario, Zelda, or Pokémon can instantly push console interest, local pre-orders, and physical game sales.
Right now, the Switch 2 is not failing. Far from it. But Nintendo needs to show what is coming next before the 2026 holiday season. Because for players, the question is simple: what are we saving RM for next?
Source: Kotaku
