Hold onto your gaming devices – the upcoming Nintendo Switch 2 is set to become pricier. Nintendo has announced a price increase for the Nintendo Switch 2 in Canada starting on September 1. The new price will be $679.99 Cdn, up from the current $629.99.
In Japan, the price of the Switch 2 will rise to 59,980 yen from 49,980 yen on May 25, as stated by Nintendo in response to market conditions and the global business outlook. President Shuntaro Furukawa attributed the price hike to increased component costs and other factors such as exchange rates.
Major Japanese exporters, including Nintendo, are facing challenges due to U.S. tariff increases and rising costs exacerbated by events like the conflict in Iran. Both Nintendo and Sony are grappling with soaring memory chip prices, driven by the AI boom limiting chip supply and causing disruptions in the tech industry.
Memory chip prices doubled in the first quarter and are expected to climb up to 63% in the current quarter due to high demand for AI data centers, affecting supply chains for smartphones, laptops, and vehicles. Nintendo estimates that higher component costs, especially for memory, and tariff impacts will add around 100 billion yen ($874 million Cdn) to costs in the current financial year.
Analysts suggest that the severity of rising memory costs compelled Nintendo to implement the price increase, indicating a prolonged period of cost pressures. Despite the price hikes, Nintendo anticipates profitability to remain stable compared to the previous financial year.
Switch 2 demand remains strong, contributing to Nintendo’s net profit of 424 billion yen for the fiscal year ending in March, up from nearly 279 billion yen the year before. Sales surged by 99% to 2.3 trillion yen from 1.2 trillion yen, with sustained demand for the Switch 2 but a decline in sales of the first-generation Switch.
Nintendo projects an 11% decline in profit for the fiscal year ending in March 2027, estimating sales of 16.5 million Switch 2 units, software sales growth, and a continued focus on expanding software titles. The company’s stock price rose by 3.6% following the earnings announcement.
As gaming consoles typically experience strong initial sales followed by a decline, Nintendo plans to release more software titles for the Switch 2, including collaborations with other developers.