Nintendo stock slips 0.8% as Switch 2 sales fall and memory chip costs rise

Nintendo's stock fell about 0.8% after the company reported earnings for the three months ended September 30, according to GamesBeat. The dip followed a quarter in which Switch 2 sales came in at 2.67 million units, down about 41% from a year earlier and below the 3.82 million units sold in the June 2026 quarter.

Part of the pressure came from memory chips. Nintendo's contracts on memory expired, and the company had to start buying chips at higher prices. In September it raised Switch 2 prices in the U.S. and Canada to deal with the rising cost. Memory is in short supply partly because chip makers are busy producing high-bandwidth memory for AI chips, and the shortage is expected to last for years.

The quarter's revenue was $2.8 billion (448.2 billion yen), against 481.37 billion yen expected. Net profit was 73.5 billion yen, compared with expectations of 82.16 billion yen.

Nintendo has not changed its forecast of selling 16.5 million Switch 2 units in the fiscal year ending March 2027. To date it has sold 26.35 million Switch 2 hardware units and 73.21 million copies of software. The original Switch, which debuted in 2017, has sold 157.2 million units and 1.593 billion copies of software.

Recent software has been mixed. Star Fox, released in June, sold 1.17 million units. Splatoon Raiders, released in July, sold 2.42 million units. Fire Emblem: Fortune's Weave, released in September, sold 1.34 million units. Mario Kart World and Pokémon Pokopia continued to sell well, and GamesBeat lists Tomodachi Life: Living the Dream and Pokémon Pokopia among recent hits.

Nintendo launched The Legend of Zelda: Ocarina of Time the day before the report, and some hope the remake will lift Switch 2 sales this quarter. It will compete with Grand Theft Auto VI, which arrives November 19, 13 years after its predecessor. That game will not run on the Switch 2 at launch, only on Xbox Series X/S and PlayStation 5.