Nintendo’s cumulative Q3 FY March 2026 results showed revenue up 99% year-on-year to ¥1.9058 trillion, and operating profit up 21% to ¥300.3 billion. Switch 2 unit sales reached 17.37 million, slightly below my expectations but still the fastest adoption pace in history. Nevertheless, the stock price fell sharply the next day.

There are three main reasons:

Uncertainty around DRAM prices

Risk from AI technological innovation

Structural losses in the Japanese market

Switch 2 DRAM is supplied under long-term stable contracts, and President Shuntaro Furukawa commented that production volumes are secure for FY2026. Market reactions may be somewhat excessive, but uncertainty has increased.

Regarding AI innovation, some believe generative AI lowers entry barriers, making game development easier and reducing the significance of major studios. Google (Alphabet, GOOG) demonstrated a “world AI generation system” capable of producing environments resembling The Legend of Zelda and Super Mario. This fueled speculation that expensive game development may become unnecessary.

However, Google’s current offering can only create something akin to an interactive animation. It is not a direct competitive threat. While AI may advance rapidly, expertise in game balance and design cannot be easily replaced. And if it can be, Nintendo would likely adopt the technology effectively. A crisis can also be an opportunity.

The third issue is Japan’s profitability structure. Switch 2 is manufactured in Vietnam and costs are largely dollar-denominated. Yen depreciation raises production costs in yen terms. Meanwhile, consoles must be priced affordably to sell. The Japan-only model is priced at ¥49,980 (tax included), a strategic price.

As a result, Switch 2 sold 4.78 million units in under six months in Japan — matching the pace of Nintendo DS, which shipped 9.12 million units in its first year (FY March 2007). But the more it sells, the more hardware losses accumulate; a difficult dilemma.

(http://www.autoadmit.com/thread.php?thread_id=5835186&forum_id=2...id.#49672579)

Sometimes it feels like Jap companies like Nintendo are ridiculously conservative. I don't think they had enough resources to both come out with a Console and make Games for it.

(http://www.autoadmit.com/thread.php?thread_id=5835186&forum_id=2...id.#49672642)

Their release of the games alongside the movie is also shrewd. Sega has given use close to nothing since the sonic movies released

Maybe we should just stfu and play out Nintendo backlogs

(http://www.autoadmit.com/thread.php?thread_id=5835186&forum_id=2...id.#49672672)

Also, my subjective experience is influenced by the fact that OOT was revolutionary, and MM is just The Same, but shorter, not as epic, and leans too hard into being dark to achieve the same caliber of 'greatness' imo. It's like comparing goldeneye and perfect dark or something.

The thing where there are 50 sidequests that people love for some reason is western catnip btw. I got the fierce diety mask so I must've done a ton of them but I never felt enamored with them.

(http://www.autoadmit.com/thread.php?thread_id=5835186&forum_id=2...id.#49672809)

I think Nintendo already had written Rare off by the time shitcube came around. They were looking to the East, having grown weary of being betrayed by the western market.

(http://www.autoadmit.com/thread.php?thread_id=5835186&forum_id=2...id.#49672928)

https://www.reddit.com/r/Mario/comments/1es11o2/had_it_not_been_rushed_sunshine_could_have_been/

what the fuck Nintendo. did you FORGET you had a Console coming out? 1996 to 2002. 6 years. lmao.

(http://www.autoadmit.com/thread.php?thread_id=5835186&forum_id=2...id.#49672944)

these games can still be milked quite a bit. it's not like they're Konami releasing peace walker again. who among us has actually played galaxy 2?

and yeah they could do a ray-traced 4k Odyssey sequel but we'd all just give it shit for being The Same. because there's not that much that they could fucking do. so it would be The Same basically.

(http://www.autoadmit.com/thread.php?thread_id=5835186&forum_id=2...id.#49673031)

I don’t think there’s anything that’s dated in them. They look The Same as a new title.

(http://www.autoadmit.com/thread.php?thread_id=5835186&forum_id=2...id.#49673534)