A significant drop in Nintendo’s share price on Wednesday wiped billions from the company’s value, amid growing concern over the surging price of components and memory chips.
Nintendo’s share value dropped as much as 4.7 per cent on December 10, with the surging prices and shortages of key components, including memory chips, playing a major role.
Nintendo Shares Drop 4.7 Per Cent
Bloomberg reports the drop in Nintendo’s share prices is the biggest since May, citing market intelligence firm TrendForce in stating that the price Nintendo has to pay for 12 GB RAM in the Switch 2 has jumped 41 per cent.
In December, Nintendo’s shares have declined in seven of eight trading days, wiping around $14bn of value from the company, and the concern is that it could get worse.
While the Switch 2 has enjoyed an extremely popular launch period, aided by the releases of the likes of Mario Kart: World, the component situation in the market is becoming extremely problematic for Nintendo and other developers.
Nintendo may be forced to adjust prices for the Switch 2 console, with Dell and HP among those to have already warned that price rises could be on the cards in 2026.
With the large storage sizes of some of the biggest games, many players have sought to purchase additional storage for their devices, but the prices of those add-ons are already increasing.
In a market that is extremely sensitive to price increases, as shown by the backlash earlier this year to increases to an Xbox Game Pass subscription, it creates a worrying period for Nintendo and other console-building companies.
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