Something's rotten in Mushroom Kingdom, and this time around it's not Bowser's fault. Nintendo's stock price took a 4.7% nosedive today, due to predictions that the Japanese console maker won't be able to keep its profit margins as high as expected. As has become the norm these days, the fear is caused by the ongoing RAM and chip availability crisis, as AI datacenters grab any transistor that's not nailed to the floor.
The latest dip wiped $14 billion off Nintendo's market cap and brought the stock roughly to its May price, eroding gains made since then. It's also the second hit in as many days, with the weekly drop being about 9.8%. The production cost for the Switch 2 has risen substantially, given that it uses 12 GB RAM chips whose cost has reportedly risen by 41% in Q4 alone.
