Nintendo Shares Fall Nearly 6% as Surging Global Memory Chip Prices Threaten Switch 2 Profit Margins

Nintendo shares fell 5.72% on Friday, dropping 466 yen to close at 7,679 yen in Tokyo, even as Japan’s Nikkei 225 surged more than 4%. The decline highlighted how the ongoing global memory chip shortage is still weighing on the video game maker’s stock and, specifically, on profitability pressures for its Switch 2. Nintendo relies heavily on memory components, and the company has repeatedly warned in 2026 that rising memory chip costs threaten margins. After missing revenue estimates in February and citing an “unprecedented shortage” of chips, the stock dropped as much as 11%. In May, shares fell again when Nintendo raised Switch 2 retail prices by 7% to 20% in Europe, the U.S. and Japan, citing component costs. Nintendo projected fiscal 2027 Switch 2 unit sales of 16.5 million.