Nintendo Stock Drops as Analyst Compares Switch 2 Era to Wii and Wii U

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Nintendo‘s stock price in Japan has dropped significantly in recent months. It’s down about 33% from its peak in August 2025, as investors reconsider the company’s plans after the Switch 2 and what to expect in the near future.

Nintendo’s stock closed at ¥9,950 ($62.70) on Tuesday, falling below ¥10,000 for the first time since April 2025. This drop comes after the stock hit a record high of ¥14,795 ($93.23) last summer – the highest price the company has ever seen.

It’s normal for the video game market to go up and down, but the recent sharp decline has worried some investors. This concern is especially strong because of questions about how games will be priced in the future, how much profit companies will make on gaming consoles, and what new games Nintendo has planned for 2026.

Nintendo’s stock price in Japan has dropped significantly, falling 33% in the last five months, according to Kantan Games CEO Dr. Serkan Toto. Investors are concerned about potential price increases, a shortage of popular first-party games, and holiday discounts on Nintendo hardware in the U.S. and Europe.

In an interview with Game Rant, Toto explained that Nintendo is used to big swings in market response whenever a new console is released, whether positive or negative.

According to Toto, how a game performs immediately after launching on consoles is really important for a company’s success in the near and medium term, so strong reactions – whether positive or negative – aren’t unexpected. He pointed to Nintendo as a clear illustration of this.

Toto explained that Nintendo’s stock price historically jumps when the company has multiple successful products. For example, during the Wii and Nintendo DS era, investors were optimistic and the stock soared. However, during the Wii U’s struggling years, confidence dropped and the stock price remained stagnant and low for an extended period.

Despite a very successful launch in June 2025 – the Switch 2 became the fastest-selling console ever – recent sales have declined. While a slowdown during the holiday season was anticipated, it has also raised worries about Nintendo’s plans for new games.

Rising costs for parts and difficulties with international trade are adding to the uncertainty surrounding Nintendo’s plans. Nintendo president Shuntaro Furukawa recently stated that the price of memory chips and tariffs, especially in the United States, are still a worry. While the upcoming Nintendo Switch 2 seems safe from current market issues, a price increase isn’t ruled out for the future.

Investors who purchased shares around last summer’s high point might need to wait for a recovery. But Nintendo believes the recent stock drop won’t significantly affect customers or the company’s overall financial health.

Toto reassured gamers they have nothing to worry about, but advised Nintendo investors who purchased stock at its highest point last summer to be prepared for a potentially longer wait for returns.

Even with a recent drop in price, Nintendo’s stock is still worth much more than it was before 2025. When the first Switch came out in 2017, shares cost around ¥2,400, and even during the popular Wii years, the price never went above ¥7,000.

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2026-01-15 22:04