Nintendo is reportedly under increasing pressure from investors to raise the price of the Nintendo Switch 2, as concerns grow over profitability and a sustained decline in the company’s stock.
According to a report from Bloomberg, the Kyoto-based company has seen its shares fall for five consecutive months, marking its longest downturn since 2016. The report notes, “Many now believe that Nintendo simply must raise prices when it reports earnings this Friday, to guard against escalating costs and appease an anxious investor community,” highlighting the growing debate among shareholders.
Despite a strong run of successful game releases and continued sales momentum for the Switch 2, the company’s market performance has not reflected that success. Bloomberg states that Nintendo “should be riding high, yet its Tokyo traded shares are on their worst run in a decade,” pointing to a disconnect between its commercial output and investor sentiment.
One of the central concerns appears to be the console’s pricing. The report claims that some investors view the $450 Switch 2 as unprofitable, particularly in light of rising component costs and broader supply chain challenges. “Nintendo investors are concerned that the $450 Switch 2 is deeply unprofitable,” the report says, citing pressure from global demand for key components and disruptions linked to geopolitical tensions.
The situation has drawn comparisons to Sony, which has adjusted PlayStation 5 pricing in response to similar pressures. Bloomberg notes, “The Tokyo company hasn’t been shy about raising PlayStation 5 prices,” contrasting Nintendo’s current stance.
Attention is now shifting to Nintendo’s upcoming earnings briefing, where President Shuntaro Furukawa may address the issue. Analyst Hideki Yasuda of Toyo Research Advice suggested that the company’s stock could continue to struggle unless pricing changes are made.
The report frames the decision as a difficult balancing act, stating, “The choice is stark: permit the shares to continue their decline by holding the Switch 2 price firm and hoping for a major software hit to change the narrative, or increase the price to steady the ship and risk alienating customers at a sensitive time in the product’s life cycle.”
Nintendo has not officially announced any plans to adjust the Switch 2 price.
