Nintendo Hikes Switch 2 Price to $499.99 as Memory Crunch Bites Sales Outlook

CNBC reported Friday that Nintendo is pushing the Nintendo Switch 2 price hike through ahead of schedule, lifting the console’s U.S. retail tag by $50 to $499.99 effective September 1. The Japanese gaming giant also issued a gloomy annual sales forecast, blaming surging memory chip costs and global trade headwinds.

Switch 2 Price Rises Across Multiple Markets

Price increases will extend well beyond the United States. Japan will see a jump from 49,980 yen to 59,980 yen starting May 25. Canada and Europe will also face higher sticker prices. Nintendo attributed the moves to shifting market conditions and a careful review of the global business environment. The company estimated that rising component costs, specifically memory, combined with tariff measures will weigh on its current fiscal year by roughly 100 billion yen, equivalent to approximately $637.8 million.

Sales Forecast Falls Well Short of Expectations

Nintendo now expects to move 16.5 million Switch 2 units in the fiscal year ending March 2027. That figure represents a meaningful drop from the 19.86 million units shipped in the year just completed. The company’s full-year net sales guidance of 2.05 trillion yen implies an 11.4% annual decline and falls well short of analyst expectations of 2.46 trillion yen compiled by LSEG. Net profit is forecast to drop 27% to 310 billion yen, also missing consensus estimates of around 418.5 billion yen. Serkan Toto, CEO of Kantan Games, told CNBC the outlook was striking given that console sales typically accelerate in a platform’s second year.

Memory Crunch: A Pressure Building for Months

The Switch 2 relies on memory chips whose prices have climbed at an extraordinary pace. Demand driven by the global buildout of AI data centers has strained supply and pushed component costs sharply higher across the consumer electronics industry. Nintendo is not alone. Rival Sony announced price increases of up to $150 on its PlayStation 5 back in March. Nintendo shares have shed nearly half their value since peaking above 14,000 yen last August, a slide directly tied to the intensifying memory squeeze.

Bright Spots Remain Amid the Headwinds

Nintendo retains meaningful franchise strength despite the pressure. The “Super Mario Galaxy Movie,” produced with Universal and Illumination, has crossed nearly $900 million at the global box office. The Switch 2 title “Pokemon Pokopia” has also emerged as a surprise hit with strong user reviews. Toto stressed that delivering blockbuster first-party titles quickly is now critical for Nintendo to stabilize hardware volumes through the year ahead.

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