Nintendo¡¯s shares fell the most in almost a month, hurt by fears that rerouted shipments in the wake of U.S.-Israeli strikes on Iran may drive up logistics costs for Europe-bound Switch 2 consoles.
The world¡¯s largest container carriers are rerouting services away from the Suez Canal and sending vessels around the southern tip of Africa, after Houthi militants threatened to restart attacks on cargo ships in the Red Sea with ties to the U.S. and Israel. The move is estimated to add more than 10 days to deliveries.
Nintendo relies heavily on sea freight to transport its $450 console from assembly hubs in Asia. Its shares fell as much as 4.7% in Tokyo on Monday, underperforming the benchmark TOPIX¡¯s decline. Shares of Sony, which also ships its PlayStation 5 consoles by sea, fell as much as 3%.
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