Nintendo is raising Switch 2 prices as chip crisis bites

Source: Engadget

Price Increase

Nintendo announced a $50 price hike for the Switch 2, raising the U.S. price to $500. The increase is driven by higher memory costs and U.S. tariffs, as detailed in the company’s earnings report. While the rise is smaller than the $150 increase seen for Sony’s PS5 over the past year, Nintendo’s younger, more price‑sensitive audience could feel the impact on sales.

Hardware Sales

• Current quarter shipments: 2.49 million Switch 2 units.
• Cumulative sales (first three quarters of fiscal year): 19.86 million units.
• Forecast for next fiscal year: 16.5 million Switch 2 units.

Analysts had expected a forecast above 20 million units, but Nintendo’s projection reflects a more cautious outlook after previously under‑estimating demand. The company still describes the 16.5 million‑unit target as “a solid level of adoption for Switch 2 in its second year after launch.”

Software Performance

• Total software sales (Switch + Switch 2): 185.62 million units (FY 2026).
• Previous year (Switch only): 155.41 million units (FY 2025).

Top‑selling titles:

• Mario Kart World – 14.7 million units
• Donkey Kong Bananza – 4.5 million units
• Pokemon Legends: Z‑A – 8.5 million units

The Super Mario Galaxy movie also generated over $800 million in its first four weeks.

Financial Overview

• Revenue FY 2026: 2.3 trillion yen ($14.7 billion), a 98.6 % increase over FY 2025’s 1.16 trillion yen ($7.4 billion).
• Projected revenue FY 2027: down ~11.4 % year‑over‑year.
• Operating profit: expected to rise slightly thanks to stronger software sales.

Nintendo attributes the upcoming revenue dip to extra costs of roughly 100 billion yen, stemming from rising component prices—especially memory—and tariff measures.