Gaming
Nintendo shares slide 10 per cent despite profit jump, hit by chip shortages
KYOTO: Nintendo shares slid more than 10 per cent on Wednesday, a day after the gaming giant missed market forecasts for quarterly revenue and warned of mounting pressure from a global memory chip shortage, as per media reports.
The company beat profit expectations, posting a 24 per cent year-on-year rise, driven by strong sales of the Nintendo Switch franchise. Revenue surged 86 per cent, with the original Switch now the firm’s best-selling console since its launch in 2017.
Yet rising component costs are weighing on investor sentiment. Nintendo relies heavily on dynamic random access memory (DRAM), a segment grappling with acute shortages as artificial intelligence and data centre demand soak up supply.
Ortus Advisors head of Japanese equity strategy Andrew Jackson, said markets remain uneasy about the impact of higher memory prices on Nintendo’s margins.
President Shuntaro Furukawa acknowledged that while soaring memory costs have not yet dented results for the current financial year, prolonged price pressures could squeeze profitability.
TrendForce estimates that contract prices for conventional Dram chips in the first quarter could jump between 90 and 95 per cent from the previous quarter. A senior semiconductor industry executive recently told CNBC the shortage may last until 2027.
Kantan Games chief executive of consultancy Serkan Toto, said sustained cost inflation could force Nintendo to raise console prices: a risky move for its largely casual user base.
The company’s newest device, Switch 2, launched in June last year and already dominates its console sales mix. But analysts warn that momentum in the first year is critical for any new platform.
Concerns persist over whether Switch 2 can match the runaway success of its predecessor, despite Nintendo holding firm on its full-year sales forecast.
The outlook hinges on upcoming blockbuster releases, including Mario Tennis Fever in February and Pokémon Pokopia in March. Nintendo is also banking on The Super Mario Galaxy Movie, due in April, to replicate the sales boost sparked by its 2023 hit film.
Omdia senior analyst James McWhirter, said 2026 would be a “make-or-break” year as Nintendo seeks broader mass-market appeal for Switch 2.
Nintendo shares are down more than 15 per cent so far this year.
Gaming
Dream Sports sees 100 plus exits after gaming ban forces overhaul
Company splits into eight units as real money gaming law hits revenue.
MUMBAI: For a company built on fantasy leagues, reality has suddenly rewritten the rulebook. More than 100 employees have exited Dream Sports, the parent of Dream11, after the company reorganised its operations following India’s ban on real money online gaming. The shake up came after the Promotion and Regulation of Online Gaming Act, 2025 came into force in August 2025, prohibiting games where users deposit money expecting winnings. The regulation struck at the heart of the fantasy gaming industry and dramatically affected Dream Sports’ core business, wiping out about 95 percent of its revenue and all of its profits.
In response, the Mumbai based company shifted into what chief executive officer Harsh Jain described as “startup mode”, splitting its operations into eight independent business units in December.
Around 700 employees were reassigned across these newly formed ventures based on their experience and interests. However, roughly 15 percent opted to leave the company.
A spokesperson for Dream Sports said many of those who exited were experienced professionals accustomed to running scaled businesses rather than early stage ventures.
“Since some of these employees were experienced with running high scale businesses and not startups, around 15 percent chose to leave and join other scaled companies or start ventures of their own,” the spokesperson said.
Despite the departures, the company noted that the attrition rate is only slightly higher than its earlier level of around 10 percent before the ban. Dream Sports now has close to 950 employees and is not currently hiring, choosing instead to focus on stabilising its existing workforce.
The restructuring has transformed Dream Sports from a fantasy gaming company into a broader sports entertainment platform. The eight units now operate independently, each focusing on different segments of the sports and technology ecosystem.
These include Dream11, sports streaming platform Fancode, sports travel service DreamSetGo, mobile game Dream Cricket and artificial intelligence initiative Dream Sports AI, which includes sports analytics platform Dream Play.
Other ventures include fintech product Dream Money, open source initiative Dream Horizon and the philanthropic arm Dream Sports Foundation.
As part of cost saving efforts, Dream Sports also relocated its headquarters from Bandra Kurla Complex to Worli earlier this year. The new office, called Dream Sports Stadium, brings teams from its various brands together under one roof to improve collaboration and operational efficiency.
Jain had earlier said the company removed bonus lock in timelines for employees hired in recent years, allowing those who wished to leave to exit with pro rata payouts.
“We want people who are fully into the startup mode and willing to work for it, and we will share that reward if it comes,” he said.
Founded in 2008 by Harsh Jain and Bhavit Sheth, Dream Sports was last valued at 8 billion dollars after raising 840 million dollars in 2021 from investors including Falcon Edge Capital, DST Global, D1 Capital Partners, RedBird Capital Partners, Tiger Global Management, TPG and Footpath Ventures.
The new gaming law has forced several companies in the fantasy gaming sector to either shut down or pivot their business models, signalling a significant reset for one of India’s fastest growing digital entertainment industries.
