Nintendo Raises Switch 2 Price and Cuts Sales Outlook as Memory Costs Surge

CNBC reported Friday that Nintendo will raise the Switch 2 price hike in the United States to $499.99, up $50, effective September 1. The same console will cost 59,980 yen in Japan starting May 25. Canada and Europe will also see increases. Nintendo cited shifting market conditions and the broader global business environment as the drivers behind the decision.

Memory Costs and Tariffs Dent Nintendo’s Annual Guidance

The company’s financial outlook for the year ending March 2027 disappointed analysts on multiple fronts. Nintendo now forecasts net sales of 2.05 trillion yen, an 11.4% year-on-year decline. That figure fell well short of the 2.46 trillion yen analysts polled by LSEG had anticipated. Net profit is expected to drop 27% to 310 billion yen, against analyst expectations of roughly 418 billion yen.

Nintendo attributed roughly 100 billion yen in headwinds to rising component costs and tariff measures. Memory chips, a core component of Switch hardware, have seen extraordinary price inflation driven by surging demand from AI data center operators worldwide.

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A Familiar Problem: Sony Moved First

Nintendo is not alone in facing hardware cost pressures. Earlier this year, Sony raised PlayStation 5 prices by as much as $150, signaling that the entire console industry is absorbing the same component inflation. Nintendo’s shares have already reflected the pain. The stock has fallen nearly 50% from an all-time high above 14,000 yen reached last August, as the memory crunch steadily eroded margin expectations.

Unit Sales Expected to Fall in Year Two

Console manufacturers typically see unit volumes grow in a product’s second year on the market. Nintendo is bucking that pattern. The company forecast sales of 16.5 million Switch 2 units for fiscal 2027, down from the nearly 19.9 million units it sold in the year just ended. Serkan Toto, CEO of industry consultancy Kantan Games, told CNBC the reversal was striking. He described the projected decline as “quite dramatic,” given how unusual it is for a console to lose momentum so early in its lifecycle.

Also Read: Sony Raises PS5 Prices Amid Hardware Cost Surge

First-Party Games Now Critical to Nintendo’s Recovery

Despite the pressure, Nintendo still commands powerful intellectual property. A new Super Mario film from Universal and Illumination has generated close to $900 million at the global box office. The Switch 2 title “Pokémon Pokopia” has also emerged as a surprise commercial and critical success. Nintendo has additional releases planned across its Splatoon and Starfox franchises this year, with two major Pokémon titles scheduled for 2027. Toto told CNBC that delivering blockbuster exclusive titles quickly is now essential if Nintendo hopes to reverse the sales slide.

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