Gaming Nintendo, Konami, and Bandai Namco All Benefit From Japanese Investors Pulling Away From AI, With 6-9% Stock Increases David Carcasole • at EDT Add on Google Nintendo, Konami, and Bandai Namco are all benefitting from Japanese investors' "AI fatigue." A report from Bloomberg (via TheNextWeb) shows that Nintendo has been able to bounce back slightly from its stock price cratering earlier in the month when the company not only announced a Nintendo Switch 2 price hike, but a declining fiscal year 2027 forecast for the new console's sales. The reason? Japanese investors are starting to pull away from investing in AI and back into more established and trusted entities, giving Nintendo a 6.8% jump on Tuesday, marking a three-day winning streak. It's also not the only Japanese developer benefiting from the AI exodus, as Bandai Namco and Konami both saw 9% increases for their own shares. Bloomberg calls it a point of "AI fatigue," as what's helping Nintendo grab "its biggest stock gain in two months," making it an even more welcome upturn for the Switch 2 makers. Especially when you recall that, just ahead of the Switch 2 price hike announcement, Nintendo had officially crossed over into its worst losing streak in a decade with five consecutive months of stock decline. Related Story Yoshi and the Mysterious Book Review — Nintendo’s Switch 2 Exclusive Ditches Platforming Challenge for a Picture-Book Sandbox of CreaturesAnd that was even with games like Pokémon Pokopia being proven system sellers, so much so that Nintendo is leaning on it (alongside Mario Kart World and Donkey Kong Bananza, the no.1 and no.2 best-selling first-party games on Switch 2), in a new choose-your-own console bundle. If this trend in 'AI fatigue' continues, we could see the kind of positive momentum that Japanese video game companies need, particularly when elements like US tariffs, which tanked the stock price of multiple companies in a single session last year, and memory shortage concerns still hang in the air over the entire video game industry, not just Nintendo. It's also interesting to note that this upturn for Nintendo, Konami, and Bandai all comes shortly after a report from The Game Business pointing to AI investment helping to bring more money into the industry, but not necessarily like this. Instead, David Gardner, co-founder of London Venture Partners, argued that AI tools will help studios figure out if they're going down the wrong path faster. The added agility awarded to being able to pivot from an idea that isn't working towards something that is working could potentially be the difference between a successful project and one that realizes its fatal flaw too late. "These long, long, long development cycles are a problem. The only strength that a start-up really has is being nimble, and being able to move fast with a new idea," Gardner said. "I do worry for the industry if we continue to have these mega long projects." "AI and small teams… that is the new business model, at least for a new IP. You get in, you start the flywheel moving, your community, you get your cash flow coming in because people are spending. And then you go big. You don’t have to have a mega team. You have more and more AI agents running to help your development be productive. If you’re heading in a bad direction, you will get there quicker." Of course, shortening development cycles is the main way all video game companies are looking to cut costs, and while it's clear that AI and Generative AI (GenAI) tools are here to stay for better or worse, even Gardner admits the obvious, which is that the tech is not enough on its own. "Are the individuals any good? Because the AI will just get them quicker to some place, whether it's a good place or a bad place." About the : David has been writing about videogames, technology, and culture since 2020, with a focus on reporting daily news across multiple publications, including GameDaily.Biz, GameSkinny, and PlayStation Universe before joining in 2025. David started contributing as Canada/US for 's gaming section in 2025. Besides being up-to-date on the industry's movements, he loves interviewing developers, reviewing games, and writing intricate essays about the symbolism and layered meanings to be found in rich narratives as he's done for publications like GamesIndustry.Biz, LostInCult, and others. Outside of games he loves movies, music, theatre, his hometown, and his family, though not necessarily in that order. Follow on Google to get more of our news coverage in your feeds. Products mentioned Nintendo Switch 2 USD 449.95 Buy from Amazon Further Reading Nintendo Slips In One Last $499 Switch 2 Bundle With Your Pick of Three First-Party Hits Before September’s Price Hike Nintendo Stock Craters 12% After Switch 2 Price Hike and Bleak FY27 Forecast, Yet Furukawa Shrugs Off Momentum Fears Nintendo Switch 2 Storms Past 19.86M Units as Nintendo’s Net Profits Increase by 98.6%, But FY27 Forecast Already Signals Decline Nintendo Reimagines Star Fox Again With James McCloud Prologue & 4v4 Star Wolf Battles, Switch 2 Exclusive Drops June 2026 Read all on Nintendo, Konami, and Bandai Namco All Benefit From Japanese Investors Pulling Away From AI, With 6-9% Stock Increases
