dailyloe.com – Nintendo announced a price hike for the Switch 2, forecasting lower sales due to a memory chip shortage. The company expects to sell 16.5 million units in its fiscal year ending March 31, 2027, down from 19.86 million in the previous year.
Starting September 1, the U.S. price of the Switch 2 will rise by $50, from $449.99 to $499.99. In Japan, the price will increase from 49,980 yen to 59,980 yen, effective May 25, with hikes also occurring in Canada and Europe.
Nintendo cited “changes in market conditions” and the “global business outlook” as reasons for the price increase. The Switch 2 utilizes memory chips that have experienced significant price hikes due to the growing demand in AI data centers.
Following Sony’s lead, which raised PlayStation 5 prices by up to $150 in March, Nintendo has also had to adjust its pricing. Nintendo shares have faced challenges, dropping nearly 50% from their record high above 14,000 yen in August due to the memory crunch.
The company’s financial forecast indicates an impact of about 100 billion yen ($637.8 million) from rising component prices, particularly for memory. Nintendo’s outlook fell short of analyst expectations.
For the fiscal year ending March 2027, Nintendo forecasts net sales of 2.05 trillion yen, marking an 11.4% year-on-year decline and below LSEG analyst expectations of 2.46 trillion yen. The anticipated net profit of 310 billion yen also misses expectations of 418.5 billion yen.
Serkan Toto, CEO of Kantan Games, remarked, “The clock was ticking for Nintendo for months now. The impact is quite dramatic, as console sales usually go up in the second year — and not down as Nintendo predicts this time.” Despite these challenges, Nintendo continues to have successes with its franchises.
The Super Mario Galaxy Movie, released this year by Universal and Illumination, has grossed nearly $900 million worldwide, according to Box Office Mojo. Additionally, the game Pokémon Pokopia for the Switch 2 has received positive reviews and has become a surprise hit.
