Nintendo Shares Dive After Forecast Exposes Memory Squeeze

Nintendo Co.’s shares plunged the most in three months after the company forecast hardware and software sales declines and warned that the soaring cost of memory chips was hitting margins.

The Kyoto-based games maker on Friday released a surprisingly downbeat projection of 16.5 million sales of its Switch 2 console this fiscal year, accompanied by 60 million software copies. The company’s stock price fell 10% in Tokyo on Monday to its lowest since August 2024, when sales momentum for the original Switch decelerated.