Nintendo shares plunged more than 10% on Wednesday as the gaming giant faced headwinds from an unprecedented memory shortage and quarterly revenue missed market expectations on Tuesday.

company beat profit However, the company’s sales are expected to increase by 24% year-on-year, driven by Nintendo Switch sales. best selling console of all time Since launch in 2017, revenue has grown 86%.

Nintendo has faced several headwinds this year, including a shortage of memory chips, a key component of its consoles, which has sent prices soaring.

Andrew Jackson, head of Japan equity strategy at Ortus Advisors, said investors remain concerned about the impact of memory costs on the company’s profit margins.

While Nintendo President Shuntaro Furukawa said on Tuesday that rising memory prices would not have a significant impact on this fiscal year’s results, he said profitability could be affected if component costs remain high for a long time.

The company kept its full-year sales forecast for Switch 2 unchanged on Tuesday.

The company plans to launch a Switch 2 version of Mario Tennis Mania in February and Pokopia in March — both games from its most popular franchises.

The company also plans to release Super Mario Galaxy The Movie in April. The first Super Mario movie coming in 2023 gave Nintendo a huge boostconsole sales, the company may be hoping for a similar effect with the Switch 2.

On Tuesday, Omdia senior analyst James McWhirter told CNBC that 2026 will be a “make-or-break” year for the future of the Switch 2 as Nintendo looks to gain more mass-market appeal.

—CNBC’s Arjun Kharpal contributed to this report