Nintendo’s stock has declined for five consecutive months, marking the company’s longest sustained stock decline since 2016, as per a report from Bloomberg.
The decline comes despite strong commercial performance from the Switch 2 and the success of Pokémon Pokopia, which sold 2.2 million units in its first four days. Bloomberg also noted that The Super Mario Galaxy Movie has become the highest-grossing film globally in 2026 and is nearing $900 million at the box office.
Investors are reportedly worried that the Nintendo Switch 2 may not be generating enough profit at its current $450 price point.
Nintendo President Shuntaro Furukawa is expected to address the pricing issue during the company’s latest quarterly earnings call on Friday.
Bloomberg’s Tech In Depth newsletter reported that investors are increasingly concerned about Nintendo’s pricing strategy for the Switch 2 amid the current economic environment and ongoing memory shortages.
Sony has already raised prices across its PlayStation ecosystem, including the PS5, PS5 Slim, PS5 Pro, and PlayStation Portal. Nintendo, however, has so far kept the Switch 2 price unchanged.
Analysts Divided on Price Increase
Toyo Research Advice analyst Hideki Yasuda told Bloomberg that Nintendo’s stock could continue falling unless the company raises the Switch 2 price.
“The market is punishing stocks that lack inflation hedging power,” Yasuda said.
Wedbush Securities analyst Michael Pachter took the opposite view, saying a price increase would be a mistake in the current economic climate.
“I think they would be foolish to raise prices. The consumer is hurting — people are paying more for gasoline and food, and when prices go up, entertainment budgets are one of the first things to go,” Pachter told Bloomberg.
Pelham Smithers Associates, an independent research firm covering Japanese stocks, said Nintendo faces risks regardless of its decision.
“If they make a mistake on pricing, whichever way it goes, we run into the Wii U problem — the situation will just get worse and worse,” the firm said in a research note.
Nintendo may ultimately choose a wait-and-see approach before making any pricing decision.
