Nintendo has announced a global price increase for its Switch 2 console starting from September, citing rising memory chip costs due to AI data center demand as the primary reason. The company also expects a decline in Switch 2 sales and reported lower-than-expected financial forecasts.
Key Takeaways
Nintendo has announced a global price increase for its Switch 2 console starting from September. The company cited rising memory chip costs due to AI data center demand as the primary reason for the hike. Nintendo also expects a decline in Switch 2 sales and reported lower-than-expected financial forecasts. The price of the Switch 2 will rise from $449.99 to $499.99 in the US, €469.99 to €499.99 in Europe, and ¥49,980 to ¥59,880 in Japan.
The price of the Switch 2 will rise from $449.99 to $499.99 in the US, €469.99 to €499.99 in Europe, and ¥49,800 to ¥59,880 in Japan. Nintendo has sold almost 20 million Switch 2 consoles since its release last June.
Nintendo's financial forecast for the year ended March 2027 reflects an approximately $637.8 million impact due to rising component prices and tariff measures. The company now forecasts a decline in net sales by 11.4% and a 27% decline in net profit, missing analyst expectations.
Nintendo is not alone in facing these challenges. Sony also announced price increases for its PlayStation 5 console earlier this year, citing similar market conditions. Both companies are grappling with the impact of surging memory prices on their gaming businesses as AI data center demand constrains chip supply and drives up costs.
How this summary was created
This summary synthesizes reporting from 4 independent publishers using AI. All sources are cited and linked below. NewsBalance is a news aggregator and media literacy tool, not a news publisher. AI-generated content may contain errors or inaccuracies — always verify important information with the original sources.