Nintendo's Shares Experienced a Sharp Decline Due to the Global Memory Crisis.

Sharp Decline in Nintendo Shares: Impact of Quarterly Results

Japan-based gaming console manufacturer Nintendo has raised concerns among investors as its quarterly revenue fell short of market expectations, leading to a decline in its shares. The company's stock experienced a loss of over %11. Nintendo managed to increase its profits by %24 annually thanks to the Nintendo Switch, which has attracted user interest since 2017. However, despite this strong performance, the quarterly results, which showed an %86 increase in revenue but fell behind market expectations, caused a decline in share value.

Memory Shortages and Future Profitability Concerns

Investors are worried that the shortage of memory chips, a critical component of gaming consoles, and the resulting price increases could negatively affect Nintendo's profit margins. Shuntaro Furukawa, the company president, stated that the rise in memory costs has not greatly impacted the results for the current fiscal year. However, he emphasized that if this situation becomes permanent, it could adversely affect long-term profitability.

According to market research data, the intense demand from artificial intelligence and data centers is exacerbating the supply shortage of DRAM chips. This situation could lead to an increase in the contract prices of chips by %90-95. Another senior executive in the industry expressed that the memory chip shortage is expected to continue until 2027.

Renewed Hope with New Games and Movies

Despite all these pressures, Nintendo continues to maintain its sales targets for the Switch 2. The company's new releases planned for February and March, such as "Mario Tennis Fever" and "Pokémon Pokopia", raise questions about whether they will encourage users to transition to the new console. Additionally, the upcoming release of the "Super Mario Galaxy Movie" in April is expected to generate momentum similar to that of the first film released in 2023.