Nintendo hikes Switch 2 prices, expects console sales to decline
Nintendo Co. Switch 2 game consoles will be available Thursday, June 5, 2025, at a Bic Camera Inc. in Tokyo, Japan. in the electronics store. From Tokyo to Manhattan, Nintendo Co. fans queued for hours to be among the first to get their hands on the Switch 2, sparking one of the biggest global gadget launches since the iPhone launched yesterday.
Kiyoshi Ota | Bloomberg | Getty Images
Nintendo’s It will increase the retail price of the Switch 2 after predicting a decline in sales of its flagship console due to the memory chip crisis affecting the Japanese gaming giant.
The company said Friday it expects to sell 16.5 million units of Switch 2 in the fiscal year ending March 31, 2027. This is a decrease from the 19.86 million units sold in the just-ended fiscal year.
Meanwhile, the company’s forecasts for this year were well below analyst estimates.
Nintendo said the Switch 2’s price in the US will increase by $50, from $449.99 to $499.99. From September 1st. In Japan, Nintendo will increase the price from 49,980 yen to 59,980 yen starting in May. 25. Nintendo also said Switch 2 prices will increase in Canada and Europe.
Nintendo said the increase in console prices was “in light of changes in market conditions” and after the company took into account its “global business outlook.”
Switch 2 consoles use memory chips that have witnessed unprecedented price increases due to the impact of the global AI data center structure. Nintendo was forced to increase console prices after its rival sonyIn March, it announced price increases of up to $150 on its flagship PlayStation 5.
Nintendo shares have been under pressure since reaching a record high of over 14,000 yen in August, and have fallen almost 50% since that peak as the memory crisis has affected the company.
Nintendo on Friday said its financial forecast for the year ending March 2027 reflects an impact of about 100 billion yen ($637.8 million) due to rising component prices and “tariff measures,” particularly for memory.
The company’s outlook was shy of analyst expectations. Nintendo now forecasts annual net sales to fall 11.4% year-on-year to 2.05 trillion yen, missing LSEG analysts’ expectations of 2.46 trillion yen. The company also said it expects net profit to fall 27% to 310 billion yen, below analysts’ expectations of 418.5 billion yen.
“The clock has been ticking for Nintendo for months,” Kantan Games CEO Serkan Toto told CNBC. “The effect is quite dramatic, as console sales usually increase in the second year and there is no decline as Nintendo predicted this time.”
Switch 2 was released last June.
Despite headwinds, Nintendo continues to achieve success with its well-known brands. Released this year by Universal and Illumination, “Super Mario Galaxy Movie” grossed nearly $900 million worldwide, according to Box Office Mojo.
The Switch 2 game “Pokémon Pokopia” became a surprise hit, receiving positive reviews from users and becoming one of the console’s best-selling games to date.
Nintendo has a new game in the “Splatoon” and “Starfox” series for this year. There are two major Pokémon games planned for release next year.
“It is now absolutely critical for Nintendo to release blockbuster first-party games as quickly as possible to increase sales,” Toto said.
Nintendo reported first-quarter revenue of 407.2 billion yen, falling short of analyst estimates of 430.6 billion yen compiled by LSEG. However, net profit was 65.2 billion yen, above analysts’ expectations of 63.28 billion yen.
