Nintendo shares have experienced significant decline, losing more than 40% over the past year as the company faces mounting financial pressures. According to latest earnings reports, Switch 2 sales plunged 41% year-over-year in the fiscal second quarter, with the company selling 2.67 million units in the three months ended September 30, 2026. This represents a decline from 3.82 million units sold in the previous quarter, as reported by YugaTech. The company has maintained its annual target of 16.5 million Switch 2 sales despite current challenges, having sold only 6.49 million consoles during the first six months, leaving another 10 million units to sell before March 2027.
Nintendo's biggest holiday weapon arrived on November 5: The Legend of Zelda: Ocarina of Time, a critically acclaimed remake that is already generating attention including a reported infinite-jump glitch that could interest speedrunners. As reported by Citi analysts, the game's launch represents a 'very strong start' according to Nintendo President Shuntaro Furukawa. The bank believes Zelda could drive holiday console purchases, stating that given these growth drivers, 'we believe the shares will recover following a temporary correction.' The company is counting on upcoming game releases to help drive demand, with new Pokémon titles scheduled for 2027 adding to the holiday lineup. For consumers, the game is currently available for £54 on Amazon UK (a £5 saving) and $69 MSRP in the US, though Amazon US is experiencing stock issues with new orders not expected until November 12-13.
The company faces significant margin pressures from rising memory-chip costs, with Nintendo raising Switch 2's US price to $499.99 in September, representing an increase of $50 amid supply constraints. The price hikes came as the company expects rising component costs and tariff-related measures to have an impact of around ₹100 billion yen on its financial outlook, as reported by YugaTech. Despite these challenges, Nintendo has not revised its full-year forecasts, continuing to expect ₹2.05 trillion in net sales, ₹370 billion in operating profit, and ₹310 billion in net profit for the fiscal year ending March 2027.
Nintendo's quarterly results missed analyst expectations across key metrics. Revenue reached ₹448.2 billion, falling short of the ₹481.37 billion expected by LSEG analysts, while net profit came in at ₹73.5 billion, below the ₹82.16 billion estimate. The company's operating profit fell 16% to ₹73.9 billion, missing analyst expectations. For investors, three key developments will determine Nintendo's recovery momentum: holiday demand - whether Zelda can attract enough new Switch 2 buyers, profit margins - the company's ability to absorb rising manufacturing costs, and annual targets - delivering the remaining 10 million console sales. The Christmas quarter will provide the first major test, with strong holiday sales potentially supporting Citi's recovery thesis, while another disappointing quarter would put Nintendo's ambitious annual forecast under greater scrutiny.
