Where Is Super Mario?... Halved Stock Price Puts Nintendo in the Spotlight [Mwonil Issyu]

AI and Semiconductor Boom Becomes a Headwind
Rising Production Costs for Switch 2
Investors Shift from Gaming Stocks to AI

'Super Mario', 'The Legend of Zelda', 'Animal Crossing', and even 'Pokopia'... If there is one Japanese brand that has consistently been loved, it is probably Nintendo. Recently, however, Japanese media have been casting a concerned eye on Nintendo. The reason is its stock price. On June 24, Nintendo's stock closed at 6,842 yen, down 1.08% from the previous day. This is the lowest level since August 2024. Compared to its all-time high of 14,795 yen in August 2025, the stock has fallen to less than half that value. For this reason, major outlets such as Nihon Keizai Shimbun (Nikkei) and Bloomberg have provided in-depth coverage of Nintendo's declining stock price.

A scene from Nintendo Japan's commercial "It's You, MARIO," created to celebrate the 40th anniversary of Super Mario's release. It recreates the Super Mario gameplay screen from the 1980s. Nintendo.

In March, Nintendo appeared to have achieved box office success with the release of its new title, Pokopia, which has been called the 'Animal Crossing: Pokémon version.' So how did Nintendo end up in this situation? Interestingly, this time the assessments of Nintendo's loyal game fans and the financial market coincided—something rarely seen. Bloomberg even pointed out, "It is rare for these two groups to share the same perspective."

The disappointment for Nintendo fans began with the 'Nintendo Direct' event held on June 9. This is an online presentation where Nintendo announces new games and release schedules, also known as 'NinDa.' It is a major event that attracts not just Nintendo fans worldwide but also investors, since notable new titles can raise the company's investment value. In this latest Nintendo Direct, nearly 30 games and additional content were introduced, including a remake of 'The Legend of Zelda: Ocarina of Time,' new content for Pokopia, 'Final Fantasy,' and more.

At first glance, the announcements seemed to lack nothing, but the market's assessment was different. For major franchises like The Legend of Zelda and Pokopia, only remakes or additional downloadable content were introduced. The concern is that there is no 'killer content' in sight that could drive Nintendo's performance over the next few years. Notably, there was no announcement of a new 'Super Mario' title, which is central to Nintendo's identity. The absence of large-scale new releases led to the perception that it would be difficult for Nintendo to create a new blockbuster hit.

New update details for Pocopia revealed by Nintendo in the 'Nintendo Direct'. Features such as swimming underwater have been added. Nintendo.

However, there are reasons behind the shortage of new titles. Bloomberg noted that Nintendo's current slump is related to the overall state of the gaming industry. During the COVID-19 pandemic, as people spent more time at home, the gaming industry experienced unprecedented prosperity. Game companies rapidly increased their workforce and invested heavily in new title development.

The problem arose after the pandemic. Labor and investment costs remained high, but the number of people playing games returned to pre-pandemic levels, intensifying competition. As a result, the gaming industry as a whole is undergoing restructuring, according to Bloomberg. In fact, Tencent has reduced its investment in game studios, and even Microsoft—which acquired Blizzard—has implemented restructuring measures. The industry as a whole is now moving to 'scale down.'

Of course, Nintendo is in a different position from other companies; it still has ample cash reserves. Nintendo is also known for its policy of not resorting to mass layoffs, even when business conditions are poor. Therefore, while it is not in a situation where corporate restructuring is necessary, there is a prevailing view that Nintendo will not aggressively pursue new title development. Japanese animation and game columnist Kiyoshi Tane commented, "Given Nintendo's strong liquidity, it is unlikely that the company will suddenly change its management decisions to boost the stock price in the short term," and added, "It is also difficult to rush the development of flagship IPs like Super Mario or The Legend of Zelda."

Introduction scene of Nintendo's new game console 'Nintendo Switch 2'. Nintendo.

There is one more unexpected factor behind the recent stock price decline: the artificial intelligence (AI) investment boom. This has created several headwinds for Nintendo. The first is the rise in memory prices. The spread of generative AI has significantly driven up semiconductor memory prices. As a result, the manufacturing costs for Nintendo's game consoles, like the Switch, which require a large number of memory chips and other components, have increased. Nikkei also pointed out that "selling pressure is continuing due to concerns about deteriorating profitability as a result of rising memory prices."

Given these conditions, investors' attention is inevitably shifting to AI. Funds are moving from gaming stocks to AI and semiconductor stocks, which are now leading the stock market. Nikkei noted that, as a result, gaming and entertainment-related stocks, including Nintendo, are being sold to purchase semiconductor stocks.

Local media have concluded that in order to overcome this situation, Nintendo needs 'killer content.' Nintendo has, in fact, succeeded several times with new IPs such as the fitness program game 'Nintendo Ring Fit' and the paintball shooting game 'Splatoon.' Will a new IP emerge to help Nintendo through this situation?

For now, both fans and investors may have no other choice but to wait and see when a new 'Super Mario' will make its return.

This content was produced with the assistance of AI translation services.