Nintendo is raising Switch 2 prices as chip crisis bites - Engadget
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Nintendo is raising Switch 2 prices as chip crisis bites - Engadget
"Nintendo is raising the price of its Switch 2 by $50 to $500 in the US as it faces higher memory costs and US tariffs, the company announced in its earnings report. That increase is less than the $150 that Sony's PS5 console has gone up over the last year, but Nintendo has a younger, more price sensitive fan base, so that boost is likely to cut into sales."
"The company revealed that it shipped 2.49 million Switch 2s this quarter, meaning it sold 19.86 million of the consoles in only three quarters over its last fiscal year. However, Nintendo is forecasting significantly lower sales of 16.5 million Switch 2s for the next full fiscal year."
"Many analysts were expecting a sales forecast for next year of 20+ million Switch 2s considering the success of the console's launch. The Japanese company may be tempering expectations a bit with its latest forecast, though, as it significantly underestimated sales last year. Nintendo still thinks its 16.5 million unit sales forecast "represents a solid level of adoption for Switch 2 in its second year after launch.""
"Overall, Nintendo's 2026 fiscal year revenue was up massively by 98.6 percent over 2025 to 2.3 trillion yen ($14.7 billion) compared to 1.16 trillion yen ($7.4 billion) the year before. It expects that to drop nearly 11.4 percent next year, though it's forecasting a slight rise in operating profit due to boosted software sales. Its forecast included extra costs of about 100 billion yen "due to rising component prices, particularly for memory, and tariff measures.""
Nintendo raised the US price of Switch 2 by $50 to $500, citing higher memory costs and US tariffs. The company shipped 2.49 million Switch 2 units this quarter and sold 19.86 million consoles over three quarters in its last fiscal year. For the next full fiscal year, Nintendo forecasts 16.5 million Switch 2 units, below analyst expectations of 20+ million. Nintendo still characterizes 16.5 million as a solid adoption level in the second year after launch. Software unit sales increased to 185.62 million from 155.41 million, with major titles including Mario Kart World, Donkey Kong Bananza, and Pokemon Legends: Z-A. Nintendo also reported strong movie performance for Super Mario Galaxy. Revenue rose 98.6% to 2.3 trillion yen, with operating profit expected to rise slightly despite a revenue decline, supported by software sales and higher costs of about 100 billion yen.
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