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Games & Commerce
Nintendo asks suppliers to produce 20 million Switch 2 units, 20 percent above sales forecast
Nintendo is planning about 20 million Nintendo Switch 2 console units through March 2027 and has internally asked partners for production above its official sales outlook of 16.5 million units. The figure is seen as a pre-emptive move reflecting upcoming game releases and potential demand changes, a report said. Officials said the plan is not final and could be adjusted. Analysts cited demand, software sales and the U.S. market as key variables.
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.
Industry
Ajinomoto faces pressure to raise prices for key semiconductor material
Japan\'s Ajinomoto, known as a food company, is facing rising investor pressure over pricing in its semiconductor materials business as demand for AI semiconductors grows. UK investment fund Palliser Capital said the company is not sufficiently boosting profitability, focusing on its Ajinomoto Build-up Film (ABF) insulation material. Palliser proposed raising ABF prices by at least 30 percent, arguing the cost impact on customers would be limited. Analysts said any increase depends on supply-demand conditions.