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Games & Commerce

AI chip shock hits game sector as Nintendo shares fall 8 percent in a day

Nintendo\'s shares fell sharply after it announced higher prices for its next-generation Switch 2 console and lowered its sales target, raising concerns about weak demand. The stock dropped 8.4 percent in Tokyo to 7,020 yen, its lowest since August 2024, and is down 34 percent this year. Nintendo cited rising production costs driven by surging memory chip prices amid AI infrastructure expansion.

Games & Commerce

Nintendo rolls out two-track strategy, from mid-sized new titles to major IPs

Nintendo is accelerating its bid to get ahead in the global games market in the Switch 2 era by combining a new lineup led by Mario Tennis Fever with a strategy to deepen content. The approach aims to minimise gaps during the hardware transition by building a stable software supply system. Nintendo is also balancing mid-sized titles and performance upgrades for existing hits, while strengthening third-party partnerships and preparing more releases for 2026.