Nintendo announces 10-to-1 stock split; says switch sales may drop 9%

As a major part of its attempt to make its shares more appealing to retail investors, Nintendo has recently declared a stock split of 10-for-1.

Nintendo’s shareholders have been frequently asking for a stock split for quite some time. The main reason for this is to boost Nintendo’s liquidity. This move will come into force from October 1 this year. After this, each share of the company’s common stock will be segregated into 10 individual shares.

Additionally, Nintendo announced that the company expects to sell atleast 21 million Switch games consoles during the financial year which commenced on 1st April. That would be a drop of 9% over last year and the company's second annual decline as a result of component shortages.


A lot of big tech companies, such as Amazon and Apple have previously announced stock splits a few years back. Although the split does not alter the corporate in any particular way, they do make each share cheaper, so that retail buyers may be more interested in them.

Stock splits basically add value to a company’s stock value. The company’s shares have increased by 5% year-to-date irrespective of the actual fact that other major technology corporations have lost millions of dollars because of the sharp sell-off of risky assets this year. Nintendo's shares closed flat at 56,360 yen. The announcement was made just ahead of its earnings.

Despite a drop from 235 million units of software sold last year, Nintendo expects to sell 210 million units of software this year. The sequel to "Legend of Zelda: Breath of the Wild" has been delayed to the spring of 2023, meanwhile, the upcoming title of the current year includes "Splatoon 3".