Nintendo shares fell ~7% in Tokyo trading after the company issued cautious FY27 guidance alongside record FY26 results. Revenue is projected to drop 11.4% to ¥2.05 trillion and net profit 26.9% to ¥310bn. Switch 2 hardware unit sales are guided at 16.5 million, down ~17% from FY26. A ¥100bn cost headwind from higher LPDDR5X memory prices (up 41%), US tariffs on Asian electronics, and elevated shipping costs tied to the Iran conflict is driving a price hike: the Switch 2 rises to $499.99 in the US from September and to ¥59,980 in Japan from late May. The weaker outlook is compounded by a thinner first-party game pipeline for the next 12 months, with no confirmed Zelda or 3D Mario title in the window. The AI-driven DRAM squeeze affecting SK Hynix and Micron is identified as the root cause, with Sony's PS5 having faced the same dynamic earlier.
