Key Takeaways
1. Nintendo’s stock has dropped 33% since August 2025, partly due to concerns over a memory shortage affecting the Switch 2.
2. Sony has secured sufficient GDDR6 memory for the PS5, reducing the risk of price increases and allowing for promotional discounts.
3. Nintendo President Shuntaro Furukawa plans to focus on long-term component procurement, but suppliers are hesitant to offer long-term contracts.
4. The success of the Switch 2 is crucial for Nintendo, as it needs to attract hesitant Switch owners with strong game titles.
5. Any price increase for the Switch 2 or PS5 could significantly impact gamers amid ongoing economic challenges.
Japanese gaming journalist Tane Kiyoshi has shared his thoughts on the challenges facing Nintendo’s stock. In an article on Yahoo Japan, he links the recent decline to worries about the ongoing memory shortage. While it appears that PlayStation has managed to stock up on GDDR6 RAM for the PS5, there seems to be more uncertainty regarding the preparations for the Switch 2.
Stock Performance
Nintendo’s stock has dropped around 33% since reaching its peak in August 2025. In contrast, even though hardware sales are down, Sony investors have experienced a less severe decline. Kiyoshi suggests that the inflated memory prices are making Nintendo fans more cautious. If the supply of essential components remains unstable, there may be a risk of higher prices for the Switch 2.
Insights from Industry Sources
In November, the insider source Moore’s Law Is Dead disclosed that the PS5 manufacturer has secured plenty of GDDR6 memory. This means the console is less likely to face price increases, allowing the company to promote holiday discounts effectively.
Nintendo President Shuntaro Furukawa recently addressed concerns regarding the financial impact of the crisis. He mentioned that his approach would be to “advance component procurement over the medium to long term.” However, manufacturers of LPDDR5X like Samsung and SK Hynix are hesitant to provide anything more than short-term contracts. Kiyoshi believes that the struggling Nintendo stock is indicative of the challenges the company is currently facing.
Future Prospects for Nintendo
The Switch 2 is at a more crucial stage in its lifecycle compared to the PS5. Sony’s console has built a large user base and can better endure a long-term sales dip. Nintendo, on the other hand, is still working to win over hesitant Switch owners, which would be simpler with blockbuster Switch 2 games. While 2026 is expected to feature a rich lineup of titles, neither a new 3D Mario nor a mainline Zelda game has a confirmed launch date.
As pointed out in the Yahoo Japan article, Nintendo’s success largely hinges on its gaming products. In contrast, PlayStation’s performance significantly affects Sony’s stock, but the company has a wider range of investments. Regardless, any price hike for the PS5 or Switch 2 would heavily impact gamers who are already dealing with a tough economy.
Source:
Link






