Nintendo Shares Fall Sharply After It Keeps Guidance Unchanged

By Kosaku Narioka

Nintendo shares fell sharply after the Japanese videogame maker maintained its annual forecasts for Switch 2 sales and earnings following sharply higher nine-month results.

Shares were recently 11% lower at 8,995 yen on Wednesday in Tokyo.

Nintendo said after Tuesday's market close that it continued to expect to sell 19 million Switch 2 consoles by the end of March. It also reiterated guidance for net profit to climb 25.5% to Y350.00 billion, equivalent to $2.25 billion, for the year ending March.

The company's projections appear conservative given its strong performance. Net profit for the nine months ended December rose 51% from a year earlier to Y358.86 billion, exceeding the full-year forecast. As of December, it sold 17.4 million Switch 2 units.

Nomura analyst Naruhito Miki said Nintendo's third-quarter operating profit undershot the brokerage's estimate due to lower sales volume of Switch 2 software titles, which left a somewhat negative impression.

Nintendo continues to expect to sell 48 million Switch 2 software copies by the end of March. It sold 37.9 million copies as of December.

The company's conservative outlook comes as hardware manufacturers are facing mounting headwinds from soaring prices for memory chips and related components.

Nintendo President Shuntaro Furukawa sounded a positive note, however, saying at a briefing Tuesday that the company has been working with business partners to secure long-term stable supply of memory parts, and that it doesn't expect the recent surge in memory chip prices to materially affect results this fiscal year.

Still, he cautioned that elevated memory prices could weigh on profitability if they persisted.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

February 03, 2026 20:27 ET (01:27 GMT)