Bloomberg is reporting this evening that Nintendo is under fire from investors to increase the price of the Nintendo Switch 2 due to a shortage of components and increasing costs. The Kyoto-based company’s stock has retreated now for five straight months, while Sony’s has weathered the storm presumably because they have had no issues rising the pricing of the PlayStation 5 and PlayStation 5 Pro. All eyes will be on Nintendo on Friday when Nintendo is due to hold its earnings briefing.
Nintendo investors are concerned that the $450 Switch 2 is deeply unprofitable. US tech giants are buying up the world’s supply of key components like memory, while trade disruptions from the Middle East war are affecting the cost of shipping and even basic materials like plastics. Japanese peers like Capcom, Koei Tecmo and indeed Sony are also under pressure.
Shareholders can eat a big bowl of butts
Publicly traded stock is a joke. Makes everyone pretend the purpose of the business is exclusively shareholder value.
No.
Businesses have serious obligations to their clients and employees, and then the owner(s) should profit. Faceless equity holders are not who a business has a primary obligation towards.
This is completely stupid. Nintendo is strong and literally holds a monopoly on their software. Increasing the price of Switch 2 would only hinder people from upgrading from the Switch 1. Who gives a crap about the shareholders.
Shareholders needs to chill the hell out. Many people knew this day will come because the investors already knew Nintendo was harm by the tariffs despite the former CEO Doug Bowser saying the company was not harm by the tariffs by Trump.
Tariffs barely make a dent, it’s the demand for AI that’s making a dent.
Tariffs are nowhere near as big of a deal as the AI corps excessively increasing the demand for chips.
I am glad the switch 2 has stayed the same price. They look better compared to their competitors who rose their prices by hundreds of dollars.
Yeah same here. It doesn’t matter if people have it or not, they are just skeptical about the console and kit prices. That’s why. I believe they might do the same for their games well by increasing it.
Infamously, stakeholders don’t see much further than the tip of their nose. They’re ready to capsize the boat they’re sitting in if it filled their vests with gold
I’m glad they’re sticking to their guns. If there’s any game Nintendo knows how to play it’s the long one. They’re big enough to weather a typhoon for decades, let alone a shortage or stockholders demands for a price increase lol. It’s crazy to think they’re dumb enough to want that considering how profitable Nintendo is across their software hardware merchandise licensing, Pokémon stake mobile titles AND movies + theme parks now. I guess it’s never enough for people like that huh
That is a great analogy. Nicely worded. I like it.