Nintendo Falls 8% After Switch 2 Price Hike and Weak Sales Forecast
Tokyo-listed Nintendo shares fell 8% after the company raised the price of the Switch 2 console and cut its forward sales forecast. Investors are worried about demand pressure and cost inflation.
Nintendo's Tokyo-listed shares dropped about 8% at the opening of the morning session. In an earnings report released overnight, the company said it had raised the retail price of the Switch 2 console by about 12% and cut its sales forecast for the coming fiscal year.
Company executives said the price increase reflected cost pressure on semiconductors and rare-earth raw materials. Senior management cited uncertainty in the global macro picture and a softening of consumer spending power as additional pressure on sales. Analysts said the price change is likely to hit Europe and Latin America most directly.
The slide triggered a broader tech sell-off in Tokyo through the morning. The Nikkei index traded lower in light losses before lunch, while the yen drifted near 145.20 against the dollar. Mitsubishi UFJ Morgan Stanley analysts cut their full-year operating profit estimate for Nintendo by about 5%.
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