Nintendo has announced price increases for the Switch 2 across several markets, citing higher costs for components and memory chips. The company attributed the move to changes in market conditions and global business outlooks.
Which markets and when
- In the United States the price of the Switch 2 will increase from $449.99 to $499.99 effective September 1, 2026.
- In Japan the price rose on May 25, 2026 from ¥49,980 to ¥59,980.
- Nintendo said the increases will also affect Canada and Europe.
Why prices are rising
Nintendo pointed to an unprecedented surge in demand for memory chips driven by the rapid expansion of artificial-intelligence data centers, which has pushed up component costs for game consoles. The company expects about ¥100 billion (approximately $637.8 million) of additional costs in the fiscal year ending March 2027 because of higher parts prices and tariff measures.
The decision follows a similar trend in the industry: Sony raised PlayStation 5 prices in March, in some cases by as much as $150.
Financial outlook and sales expectations
For the current fiscal year Nintendo plans to sell 16.5 million Switch 2 units, a significant decline from 19.86 million units the prior year. The company projects annual net sales of ¥2.05 trillion, an 11.4 percent decrease and well below analysts’ consensus of ¥2.46 trillion. Net profit is forecast at ¥310 billion, a 27 percent drop and short of the ¥418.5 billion analysts had expected.
Since the Switch 2’s launch in June last year, first-quarter revenue for the console was ¥407.2 billion, below analyst expectations, though net profit of ¥65.2 billion slightly exceeded the anticipated ¥63.28 billion.
Market reactions and strategic priorities
Serkan Toto, chief executive officer of Kantan Games, said the company has been on a ticking clock for months, and that it is especially concerning because console sales typically rise in a product’s second year rather than fall. Toto emphasized the importance of Nintendo quickly releasing its internally developed major titles to boost sales.
Upcoming and recent titles
Despite the challenges, Nintendo’s franchises remain strong: The Super Mario Galaxy Movie earned nearly $900 million worldwide this year, and Pokémon Pokopia has become one of the console’s top-selling games. Nintendo plans new Splatoon and Star Fox titles this year, and two larger Pokémon releases are expected next year.
Summary
Nintendo’s Switch 2 price increases respond to rising manufacturing costs and softer sales forecasts. The company anticipates roughly ¥100 billion in extra costs and has reduced its revenue and profit targets versus the prior year and analyst expectations. Nintendo aims to offset pressure through price adjustments and timely releases of major game titles.
