Following the massive success of the Switch 2, Nintendo’s stock price has taken a tumble due to circumstances surrounding the game industry.

As reported by Bloomberg, Nintendo’s stock price dropped 4.7% on Wednesday to its lowest level since May 2025, prior to the Switch 2’s launch. Bloomberg’s report pins the blame on rising costs due to an impending memory shortage. Demand for memory chips has surged over the past few months, mostly due to the AI boom.

Due to demand vastly outstripping supply, the price Nintendo needs to pay for Switch 2 memory modules has reportedly jumped by 41%, and the price of the NAND storage has jumped by 8%. Compounding matters is that this issue is also affecting the price of SD cards, which are an ever growing necessity as more and more developers shift to purely digital releases or Game-Key cards. Nintendo may face difficulty shifting game units and console units if the trend continues.

According to Bloomberg, PC makers such as Dell and HP are considering price hikes to offset the memory costs, and it is possible that Nintendo may end up considering this is well. That said, there is no official word of such a decision at the time of this writing.

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