Nintendo’s hit console can’t save its sliding stock, so what’s next?

Nintendo raised the price of its Switch 2 console last week, hoping the move would settle nerves among its shareholders. It did not work.

On Monday, the company’s stock fell 7 percent when Japanese markets opened, wiping out a significant chunk of its value in a single day.

The stock (TYO: 7974) had been falling for five months before the price hike was announced. Eventhough the past numbers show 20 million units of Switch 2 sold along with 50 million games on sale in the first 9 months, it doesn’t matter much to investors.They want to what’s coming ahead to stay invested, but sadly they are left with no major news.

Adding to the gloom, Nintendo president Shuntaro Furukawa even acknowledged that the higher price tag does not fully cover the company’s rising production costs.

He pointed to the surge in the price of computer components, pushed up by the global rush to build artificial intelligence systems, as well as rising oil prices. The price increase in Japan was steeper than the one coming to the rest of the world in September, yet even that is not enough to close the gap.

Nintendo targets 16.5 million units

Furukawa, is not sounding the alarm. Speaking during a financial results briefing, he pointed to signs that things are moving in the right direction, particularly in Western markets. Sales in the United States and Europe had come in below expectations during the end-of-year holiday period, he said, but the situation improved from January onward.

The release of Animal Crossing: New Horizons’ Switch 2 Edition that month, along with a free update for the original game, brought more players back to both consoles.

Then in March, Pokémon Pokopia delivered strong numbers not just in Japan but in overseas markets too, giving hardware sales a boost.

All eyes on what games are coming next

Based on current trends and how the Switch 2’s second year compares to previous Nintendo consoles at the same stage, the company has set a sales target of 16.5 million units for the coming fiscal year.

Furukawa said Nintendo has “no particular concerns” about the pace of sales and described the console’s market growth as solid, even ahead of where the original Switch stood at the same point in its life.

He also said Nintendo has “a wealth of new titles lined up” and plans to highlight what makes each one worth playing, so that fans can decide when the time is right for them to move over to the Switch 2.