Nintendo is raising Switch 2 prices in the U.S., Japan, Canada and Europe while forecasting a decline in fiscal-year console sales.
A new round of price hikes is hitting Nintendo’s Switch 2 just as the company is warning that console sales will slow—an admission tied directly to the escalating cost of memory chips.
Nintendo said it will raise the retail price of the Switch 2 after forecasting fewer unit sales for its flagship console. pointing to the way a memory chip crunch is affecting the Japanese gaming giant.. In its outlook, Nintendo expects to sell 16.5 million Switch 2 consoles in the fiscal year ending Mar.. 31, 2027, down from 19.86 million units sold in the fiscal year that just ended.
Meanwhile, the company’s forecast for the current year is described as significantly lower than what analysts had been expecting. Nintendo also framed its price moves as a response to changes in market conditions and after weighing its broader global business outlook.
The U.S. retail price is set to rise by $50, moving from $449.99 to $499.99 starting Sept. 1. In Japan, Nintendo will increase the price from 49,980 yen to 59,980 yen, effective May 25.
Nintendo added that Switch 2 price increases will also apply in Canada and Europe, but linked the adjustment to the same underlying pressures rather than to product changes. The company indicated the move comes in light of shifting market conditions and its assessment of the global business picture.
The company’s decision is closely connected to the cost of memory chips. which have surged sharply due to the global buildout of AI data centers.. Sources indicate that Nintendo is not alone in facing these supply-and-cost shocks. and the company has been forced to raise prices as chip costs continue to climb.
That pressure has also intensified competition dynamics. The report stated that Nintendo’s pricing move follows rival Sony, which had announced increases of up to $150 for the PlayStation 5 in March.
Financially, Nintendo’s shares have faced turbulence since hitting a record high above 14,000 yen in August, after which they fell nearly 50%. The report attributed that decline to the memory crunch impacting the company, reinforcing that chip costs are no longer an abstract industry issue.
For the year ending March 2027, Nintendo said its forecast reflects an approximately 100 billion yen ($637.8 million) impact from rising component prices—especially memory—and from tariff measures. Even with that warning, the company’s overall outlook was reported as shy of analyst expectations.
Nintendo now forecasts net sales of 2.05 trillion yen for the year, an 11.4% year-on-year decline, and below the 2.46 trillion yen expected by LSEG analysts. It also projected a 27% decline in net profit to 310 billion yen, again described as below analyst expectations of 418.5 billion yen.
Industry voices highlighted why the timing matters for Nintendo’s console cycle.. Serkan Toto. CEO of Kantan Games. said in the report that “the clock was ticking for Nintendo for months now. ” adding that the impact is “quite dramatic” because console sales typically increase in the second year rather than decline as Nintendo is now predicting.
Even as Nintendo manages a more difficult sales outlook, the company’s early software momentum remains part of the conversation. The report noted that the Switch 2 was released last June, and that despite the headwinds, Nintendo continues to lean on popular brands.
One major example cited was “The Super Mario Galaxy Movie,” which the report said was released this year by Universal and Illumination and has grossed nearly $900 million globally, according to Box Office Mojo. The story also points to how Nintendo’s entertainment reach extends beyond hardware.
On the gaming side, the report said the Switch 2 title “Pokémon Pokopia” has become a surprise hit, earning positive reviews from users and emerging as one of the console’s best-selling games so far.
Nintendo is also building its near-term release pipeline. The report mentioned that there is a new game in the “Splatoon” and “Starfox” franchises slated for this year, and that two major Pokémon games are scheduled for release next year.
For many investors and players, the key question is whether Nintendo can offset hardware headwinds with fast-moving first-party releases.. Toto’s comments in the report underscored this point. saying it is “absolutely critical” for Nintendo to release blockbuster first-party games as quickly as possible to drive sales.
The pricing changes and sales forecast are unfolding while Nintendo continues to report mixed results in its most recent numbers.. The report said Nintendo’s reported revenue of 407.2 billion yen for the first quarter came in below LSEG-compiled analyst expectations of 430.6 billion yen. while net profit reached 65.2 billion yen. ahead of expectations of 63.28 billion yen.
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