Nintendo's value dropped by $14 billion amid the memory market crisis
As Bloomberg noted, the stock price of the Japanese company has been almost continuously declining since the beginning of December.
Mario Kart World
Specifically, on December 10th, the price of Nintendo shares fell by 4.7%, dropping to its lowest level since May 2025. According to Google Finance, as a result, Nintendo's market capitalization decreased to 14.82 trillion yen (95 billion dollars).
Bloomberg speculated that this is all a consequence of the memory chip shortage in the market. According to analysts from TrendForce, in the last quarter, the 12GB memory modules used in the Nintendo Switch 2 increased in price by 41%, and NAND drives by 8%. This situation could affect the console's profitability, which understandably concerns investors.
Additionally, Bloomberg reports that investors might have been dissatisfied with the unexpected discount on the Nintendo Switch 2 ahead of the busy Christmas season. During Black Friday, the company offered a bundle with Mario Kart World for $50 less than usual.
Nintendo itself, at least in early November, was optimistic and did not anticipate a decline in console sales or revenue. On the contrary, it forecasted the best financial year in its history. Whether this forecast will come true will be known in the spring of 2026.