Pixel P&L: Nintendo Shares Drop 10% as Component Price Surge Pressures Switch 2 Margins

Welcome to another Pixel P&L edition. This issue takes 5 minutes to read. If you only have one, here are the 5 most important things:

• Nintendo shares tumble 10% as component shortages and rising memory costs threaten Switch 2 margins.

• GOG launches $5 monthly subscription to fund classic game preservation amid razor-thin profit margins.

• Ubisoft acquires Amazon Games Montreal team behind MOBA March of Giants, bringing back Rainbow Six Siege creative director.

• Hollow Knight: Silksong sells 7 million copies in three months, while launch day sales crashed Steam.

• Larian's Divinity announcement drives Original Sin 2 back into Steam's top 250 most-played games.

Let's get into it.

Nintendo Shares Tumble 10% as Component Costs Squeeze Switch 2 Margins

Nintendo's shares fell 10% from December's peak as component shortages threaten Switch 2 production. The company now pays 41% more for LPDDR5X memory chips and 8% more for storage components, according to TrendForce data cited by Bloomberg.

The Switch 2 uses 12GB of Micron RAM and 256GB SK hynix flash storage. Rising costs come as Nintendo reports lower per-unit profits compared to the original Switch, despite strong sales of 10.36 million units through September.

Nintendo has raised its fiscal year forecast to 19 million units ending March 2026, but the $14 billion market value loss in December signals investor concerns about margin pressure. The company already increased prices across its Switch 1 lineup to offset tariff impacts.

GOG Launches $5 Monthly Subscription to Fund Classic Game Preservation

CD Projekt's GOG storefront introduced GOG Patrons, a $5 monthly subscription supporting classic PC game preservation. The initiative addresses GOG's thin profit margins while expanding its preservation program.

GOG generated just $253,000 in profit on $39 million revenue during the first nine months of 2025, highlighting the financial strain of licensing and maintaining legacy titles. The storefront operates near breakeven due to high costs for securing rights and updating games for modern systems.

"GOG Patrons isn't a lifeline. It's a way to go further, faster," the company stated, emphasizing the subscription funds additional preservation work rather than covering operational losses.

Subscribers receive Discord access, profile badges, and credits on preserved game pages. GOG clarified this isn't a content subscription but a Patreon-style support system, with cancellation available anytime.

⚡️Quick Bytes

Ubisoft Acquires Amazon Games Montreal Team Behind MOBA March of Giants

Ubisoft is acquiring Amazon Games Montreal's development team and rights to MOBA March of Giants, bringing back Rainbow Six Siege creative director Xavier Marquis six years after his departure. Former Ubisoft Toronto managing director Alexandre Parizeau also returns as production leader. Amazon will provide Twitch marketing support under undisclosed terms. The acquisition follows Amazon's recent video game business cuts, including ending MMO development.

French President Macron Congratulates Sandfall Interactive on Game Awards Record

French President Emmanuel Macron praised Sandfall Interactive after Clair Obscur: Expedition 33 won nine Game Awards, including Game of the Year. The Montpellier studio's victory marks a historic first for French gaming. Macron called it "great pride for France," his second public endorsement following the game's million-copy launch in May. The RPG secured 9 of 12 nominated categories.

Hollow Knight: Silksong Sells 7 Million Copies in Three Months

Hollow Knight: Silksong sold over 7 million copies in three months at $20, Team Cherry announced while revealing a free 2026 expansion. Launch day sales crashed Steam, with "millions more" playing via Xbox Game Pass. The figure trails 2025's biggest sellers like Battlefield 6's 7 million in three days and indie hit Peak's 14 million total sales.

Larian's Divinity Announcement Boosts Original Sin 2 Player Count

Larian Studios' folk-horror RPG Divinity announcement at The Game Awards drove Divinity: Original Sin 2 back into Steam's top 250 most-played games. The 2017 title hit 10,898 concurrent players, nearly double last month's 5,930 peak. Earlier Divinity games saw similar surges, with Original Sin reaching 2,150 players from 941, while Dragon Commander jumped from 14 to 23.

⚔️Side Quest

🤣Laugh:

📺 Watch: Doom creator John Romero shares invaluable advice for aspiring developers: start by completing small games rather than ambitious projects, focus relentlessly on the core gameplay loop before anything else, and learn Unreal Engine with C++ for industry viability. Drawing from decades shaping the FPS genre, he offers practical wisdom on specialization, frequent testing, and efficient design philosophy.

🎮 Play: Cloudheim blends action-RPG combat with satisfying physics-based ragdolling and base-building loops. Despite Early Access rough edges, the game shines through outstanding level design, creative dungeon puzzles, and fluid movement that recalls Breath of the Wild's exploration. The crafting-shop cycle hits perfectly, and launching enemies with lasso-kick combos never gets old. Worth the price for its engaging core loop.

📚 Read: Crystal Dynamics reveals how it's celebrating Tomb Raider's 30th anniversary with two games featuring new voice actor Alix Wilton Regan. The studio discusses reimagining the 1996 original in Unreal Engine 5 while modernizing classic mechanics like instant-death traps, and explains how both titles follow the same Lara at different career stages.

💡Did You Know

The Sega Master System continues thriving in Brazil nearly four decades after its 1985 debut. While discontinued globally, the console remains in active production and distribution across Brazilian markets. This remarkable longevity stems from three key factors: prohibitive import duties on modern gaming hardware making alternatives expensive, the Master System's accessibility across income levels, and deep cultural nostalgia among Brazilians who grew up with the console. Local manufacturer Tectoy has kept the platform alive, releasing new iterations and games well into the 2020s. 

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