Nintendo has announced a price increase for its upcoming Switch 2 console, citing ongoing supply chain issues and rising component costs. The new price in the US will be $500, up from the previous $450. This change reflects the company’s effort to offset higher memory prices and tariffs that have impacted manufacturing expenses.

Price Hike and Market Impact

The $50 increase makes the Switch 2 more expensive, but it’s still less than the $150 hike seen with Sony’s PlayStation 5 over the past year. Nintendo’s core audience tends to be more price-sensitive, so the company’s decision could influence sales numbers. Despite the price bump, Nintendo reported shipping nearly 2.5 million Switch 2 units in the last quarter, with a total of almost 20 million units sold across three quarters.

However, Nintendo is now projecting lower sales for the upcoming year, estimating around 16.5 million units. This is below many analysts’ expectations, which had forecasted over 20 million units considering the console’s strong launch. The company seems to be tempering expectations after a year where initial sales outperformed forecasts, but it still believes the projected figure represents healthy adoption for the second year of the console’s life.

Software Sales and Overall Performance

Game sales continue to be a bright spot for Nintendo. This year, combined sales of Switch and Switch 2 games reached about 185.62 million units, up from 155.41 million in the previous fiscal year. Popular titles like Mario Kart World, Donkey Kong Bananza, and Pokemon Legends: Z-A contributed significantly, with millions of copies sold each.

Additionally, the Super Mario Galaxy movie has been a commercial success, grossing over $800 million in its first four weeks. Nintendo’s revenue for 2026 soared nearly 99% from the previous year, reaching 2.3 trillion yen (around $14.7 billion). Despite this impressive growth, the company expects profits to dip slightly next year, mainly due to increased costs for components and tariffs, which added about 100 billion yen to expenses. Still, Nintendo anticipates a small rise in operating profit thanks to strong software sales, showing resilience despite the challenging supply chain environment.

Overall, Nintendo’s strategy reflects a balancing act—raising prices to manage costs while relying on popular games and media content to sustain growth. The company remains optimistic about the Switch 2’s long-term prospects, even as it navigates the ongoing chip shortage and economic pressures affecting the gaming industry.

Inspired by

• https://www.engadget.com/2167631/nintendo-raises-switch-2-prices/

Sources

• co.jp