It's an interesting time for Nintendo because, despite recent successes and positive public sentiment, the company's stock price has been steadily declining since November. In fact, the drop-off has been quite dramatic. In six months, Nintendo's stock price has declined by over 50 per cent.
This may be surprising to some who see the success of Pokémon Pokopia and The Super Mario Galaxy Movie and believe that Nintendo is moving from strength to strength. In a way, they are, but global economic events are threatening to pull Nintendo under.
The world is currently experiencing a global memory shortage due to companies' voracious appetite for generative artificial intelligence. The data centres powering this technology require obscene amounts of memory to function. With this in mind, large companies have been hoovering up all the memory they can get their hands on, causing sharp price increases as supply is constricted.
This situation has only been worsened by the closing of the Strait of Hormuz, a crucial shipping lane for global trade. This is very bad news for Nintendo, which was already manufacturing the Switch 2 at a loss; a loss that's only becoming larger now that the console's memory components have become...
