TSE:7974Entertainment
Nintendo (TSE:7974) Is Down 7.5% After Cutting Switch 2 Output Amid Rising Memory Costs – What's Changed
Nintendo recently reported rising memory component costs that it cannot pass on to customers, pressuring margins and forcing a cut in quarterly Switch 2 production from 6 million to 4 million units amid softer demand.
An interesting angle is that, despite these operational headwinds, the company is leaning on its sizeable cash reserves to support its longer-term business plans.
We’ll now explore how rising memory costs and reduced Switch 2 production are shaping Nintendo’s investment...