Nintendo said it will increase the retail price of its Switch 2 gaming console in several markets after forecasting a decline in sales for the device. The Japanese gaming company said rising memory chip prices and changing market conditions have affected its business outlook. The company said it expects to sell 16.5 million units of the Switch 2 in the fiscal year ending March 31, 2027. That would be lower than the 19.86 million units sold in the previous fiscal year. Nintendo said the decision was made “In light of changes in market conditions” and after considering “the global business outlook.”The company said higher memory component costs linked to the global AI data center boom have increased manufacturing expenses. Nintendo added that its financial forecast includes an impact of around 100 billion yen due to rising component prices and “tariff measures.”
Nintendo Switch 2 price hike in US and other countries
Nintendo also announced price hikes for the console in multiple regions. In the United States, the Switch 2 price will rise by $50 from $449.99 to $499.99 starting September 1. In Japan, the price will increase from 49,980 yen to 59,980 yen from May 25. The company also confirmed price increases in Canada and Europe.The company’s forecast for the current financial year also came in below analyst expectations. Nintendo expects net sales of 2.05 trillion yen for the year ending March 2027, down 11.4% year-on-year. Analysts surveyed by LSEG had expected 2.46 trillion yen in sales.Nintendo also forecast a 27% drop in net profit to 310 billion yen, below analyst estimates of 418.5 billion yen.“The clock was ticking for Nintendo for months now,” said Serkan Toto as cited in a report by CNBC. “The impact is quite dramatic, as console sales usually go up in the second year — and not down as Nintendo predicts this time.”Despite the weaker outlook, Nintendo said some of its gaming and entertainment titles continue to perform well. “The Super Mario Galaxy Movie” has earned nearly $900 million globally, while the Switch 2 game “Pokémon Pokopia” has become one of the platform’s best-selling games.Nintendo also plans to launch new titles from its “Splatoon” and “Starfox” franchises this year, along with two major Pokémon games next year.“It is now absolutely critical for Nintendo to release blockbuster first-party games as fast as possible in order to drive sales,” Toto added.
