Nintendo (7974.T) Stock Drops 10% Amid Investor Concerns Over Switch 2 Demand

Nintendo Co. Ltd. shares (TYO: 7974.T) fell nearly 10% in Tokyo trading on February 4, 2026, catching investors off guard after strong early sales of the new Switch 2 console. The drop came as markets reacted to growing concerns about whether demand can stay strong beyond the initial launch phase. While Nintendo reported solid holiday performance, analysts flagged slower momentum expectations and rising hardware costs as key risks. Investors were also looking for clearer signs of a blockbuster game pipeline to support long-term growth.