Nintendo shares slump as price hikes, games shortfall spook market - Reuters

<a href="https://news.google.com/rss/articles/CBMiuAFBVV95cUxPX2NDY1JCcUNqTDJqcFpXcWgxZllnWHRVV0Z2eGROVHdBRWFhM1M2SWdDd0VxY2ttbFhhZ1BPOFBwY0hqYXNNZTVuU2ppSUYzNlZGRE9aajlJNnpKMWo3WFFJbUlVZGRSWlUzN1d4eE5RN3k4akpjZ0hXSHV0MWUzd2c3Y0lqR1UxQWsyNHhHWm8zUU8tTk5NeVNpQkkxTE9Jci1MZmxaRDhrc3RmM181dUlPdjRtVmR1?oc=5" target="_blank">Nintendo shares slump as price hikes, games shortfall spook market</a>&nbsp;&nbsp;<font color="#6f6f6f">Reuters</font>

Nintendo's stock dropped 11% amid concerns over the Switch 2's momentum, despite strong sales during the year-end shopping season. Investors are worried about the console's lack of high-profile game titles to sustain demand.

Nintendo and Sony are facing challenges due to rising memory prices, driven by the AI boom, which is affecting their gaming businesses. Memory chip prices have doubled in the first quarter and are expected to climb further, impacting production costs.

Nintendo forecasts a 26.9% decline in net profit for the current fiscal year, attributing it to slower sales of the Switch 2 console following a planned price hike. The company also announced global price increases for the Switch 2 due to rising component costs.