By Yang Jie and Kosaku Narioka
Nintendo shares fell Wednesday as the company's gaming pipeline failed to inspire confidence among investors worried about regulatory setbacks in Europe and a worsening cost outlook.
The Japanese videogame company's stock dropped as much as 8.2% in early trade, before paring losses to sit 7.1% lower. It is on track for the biggest daily percentage loss in a month.
That came after the maker of the popular Switch 2 console announced its lineup of videogame releases in the coming months.
Despite featuring highly anticipated remakes of titles like "The Legend of Zelda", the mix disappointed some fans hoping for more original flagship releases. With new hits seen as essential to hardware sales, the lineup has added some uncertainty around Nintendo's performance heading into the year‑end shopping season.
Earlier this week, French authorities imposed a fine of 35 million euro, equivalent to $40.4 million, on Nintendo over long‑running complaints about the functionality of its Joy‑Con gaming controller, reviving scrutiny of quality-control practices.
Adding to the pressure, analysts have warned that videogame‑console makers face mounting headwinds from surging memory-chip prices. Nintendo, which increased memory capacity in the Switch 2, is particularly exposed.
In May, the company announced price raises on Switch 2 consoles in Japan, the U.S., and some other regions.
Research firm TrendForce has estimated that memory modules could account for 21%-23% of total hardware costs this year, inflating production expenses and squeezing margins. The firm also said rising component costs are a key reason behind the Switch 2's higher price point.
Write to Yang Jie at jie.yang@wsj.com and Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
June 09, 2026 23:37 ET (03:37 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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