Nintendo's Got 99 Problems, and a Switch Is One

2 hours ago 1

Rick Munarriz, The Motley Fool

Thu, April 23, 2026 astatine 10:27 AM CDT 4 min read

This should beryllium a large clip for Nintendo (OTC: NTDOY) and its investors. The Super Mario Galaxy Movie is this year's biggest film, with much than $750 cardinal successful worldwide summons sales. The sequel to 2023's blockbuster, made successful concern with Comcast (NASDAQ: CMCSA), opens successful Nintendo's location turf of Japan this weekend. It's connected way to go the archetypal movie to apical $1 cardinal successful 2026 by the clip it's done with its theatrical run. https://www.boxofficemojo.com/year/world/?ref_=bo_nb_hm_tab

Next month, Comcast's Epic Universe successful Florida volition observe its archetypal twelvemonth of operation. A apical gully astatine the archetypal large taxable parkland to unfastened successful the U.S. successful 24 years is Super Nintendo World. It's the 3rd interactive theme-park onshore to unfastened betwixt the 2 partners.

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Two months from now, Nintendo volition observe the archetypal twelvemonth of availability for the Switch 2, the gaming giant's archetypal caller console since 2017.

But adjacent with these 3 spectacular events implicit the past 12 months, the shares person gone backwards. Nintendo banal has fallen 26% implicit the past year, plummeting 47% since past summer's high.

Two blessed customers checking retired video games astatine a store.

How did a potent trio of bullish catalysts extremity with a bearish twist? The biggest culprit is memory. The Switch 2 console components see DRAM (Dynamic Random Access Memory) and NAND (Flash) retention solutions. Game cartridges necessitate NAND to prevention gameplay data. And the surge successful request for AI chips has sent the representation marketplace skyward successful the past 9 months. Retail prices for immoderate products person risen arsenic overmuch arsenic fivefold.

That puts Nintendo betwixt a Joy-Con and a hard place. When it priced its caller console astatine $450 successful the outpouring of past year, it had already delayed U.S. preorders to measure the interaction of caller tariffs. The institution held steadfast connected its archetypal pricing, concluding that it could offset inflationary pressures connected halfway commodities by raising crippled and accessory prices. Many expected representation costs to rise, but fewer figured it would get this bad.

It gets worse for video crippled stocks, present that spending much wealth to substance up our cars leaves little wealth to fork implicit for entertainment. Rising geopolitical tensions are besides making consumers jittery. The effect is that Switch 2 strategy sales, initially brisk, person slowed. In its archetypal vacation play connected the market, the Switch 2 undersold its 2017 predecessor by much than a 3rd successful the U.S. market.

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