Nintendo is making an unexpected decision regarding its new generation console, Switch 2, which is taking the gaming world by storm. The global price hike decision announced by the company for both Switch 2 and existing Switch models is met with a harsh response from the stock market.

Shares of the Japanese technology giant are losing about 12% due to the price increase announcement and low hardware sales forecasts shared for the next fiscal year. Although Switch 2 surpassed the launch performance of the original Switch by selling 19.86 million units in its first year, the company’s lowering of its sales target for the next period to 16.5 million makes investors nervous.

Global Raise Decision and Regional Price Increases

Nintendo’s price increase decision affects different markets around the world on different dates. The company states that this decision was taken by evaluating “changes in market conditions and the global business outlook.” The first price increase occurs in the Japanese market.

As of May 25, 2026, the Japan price of Switch 2 increases from ¥49,980 to ¥59,980. This increase is seen as a reflection of costs and exchange rates in the local market.

Western markets experience this price hike in September. Starting September 1, 2026, the Switch 2 price in the US increases from $449.99 to $499.99. In Europe, prices on My Nintendo Store are reduced from 469.99 Euros to 499.99 Euros.

The fact that the console exceeded a critical psychological limit of 500 dollars/euro brings with it discussions about what impact it will have on consumer demand, especially before holiday shopping.

Hardware Sales Forecasts Frighten Investors

Price increases are not the only reason for the decline in stocks. According to analyst Daniel Ahmad, investors also seem quite uncomfortable with the hardware sales guidance shared by Nintendo for the 2027 fiscal year. Although the Switch 2 was an enormous success, selling 19.86 million units in its first year on the market, Nintendo is reducing that figure to 16.5 million for the following year.

Investors perceive the prediction that sales will decline rather than increase at the beginning of a new console’s cycle as a “risky” signal. However, Nintendo’s silence about games that have not yet been announced and the lack of transparency of the upcoming software calendar triggers the “visibility” problem in the market. This situation raises doubts about the sustainability of the momentum achieved by Switch 2.

Software Uncertainty Despite Strong Financial Statement

Despite this pessimistic mood on the stock market, Nintendo is actually having a pretty strong year financially. The company’s total revenue in fiscal 2026 reaches 2.31 trillion Yen, while its operational profit increases by 27.5% compared to the previous year, reaching 360.1 billion Yen. Software sales, in particular, remain strong on both Switch and Switch 2 platforms.

• Mario Kart World:It continues its leadership with sales of 8.85 million units.

• Donkey Kong Bananza:It keeps the series alive by reaching million-dollar sales figures.

• Pokemon Legends: ZA:Switch 2 is a great commercial success with its special edition.

Analysts argue that the 12% decline in shares may be a bit of an overreaction. The increasing profitability of the company and the fact that the current Switch 2 software has reached a significant sales figure of 48.71 million units shows that the basic operation is still solid. However, the impact of price increases on consumers and the question of when new “AAA” quality games will arrive seem to suppress Nintendo’s stock market performance for a while longer.