Nintendo raises domestic Switch 2 price to 59,980 yen, with overseas prices also going up

2026-05-08

Overview of the price revision

On the 8th, Nintendo announced that it will raise the domestic selling price of its home game console, the "Nintendo Switch 2 (Nintendo Switch Two)," to 59,980 yen. That is 10,000 yen higher than the current price. The price increase will take effect on the 25th. The move reflects rising procurement costs for key components, including semiconductor memory.

Overseas sales and earnings outlook

Overseas, prices will be raised starting September 1. In the United States, the price will increase by 50 dollars to 499.99 dollars, and in Europe by 30 euros to 499.99 euros. The older model, the "Nintendo Switch," will also be raised by about 10,000 yen domestically. President Shuntaro Furukawa explained at an online press conference that the decision to revise prices was made after taking into account the global business environment, amid higher component costs and changes in exchange rates.

Profitability deterioration and sales plan

Behind the price increase is the surge in high-performance memory "DRAM," which handles video processing and other functions. DRAM has been used in products such as smartphones, but with the spread of generative AI, demand for AI servers has surged since around 2023, and shortages and high prices have continued. Sony Group also raised the suggested retail price of the domestic standard model of the "PlayStation 5" by 18,000 yen to 97,980 yen in April.

Nintendo's consolidated net profit outlook for the fiscal year ending March 2027, announced on the 8th, is 310 billion yen, down 27% from the previous fiscal year. Operating profit is expected to rise 3% to 370 billion yen, driven by the Switch 2 price increase and higher sales of high-margin software, but recurring profit and net profit will decrease because the company has not factored in foreign exchange gains and equity-method investment gains recorded in the previous fiscal year. Sales are planned to fall 11% to 2.05 trillion yen, and Switch 2 unit sales are projected at 16.5 million units, down 17% from the previous fiscal year.

Conventional consoles tended to see sales growth in their second year after launch, but President Furukawa said about the Switch 2: "There was a boost in the first year. I do not think the hardware level in the second year after launch is by any means low, and the pace of adoption itself is progressing steadily." Concerns over worsening profitability due to soaring memory costs had kept Nintendo shares at their lowest level in the past two years. Following the weaker profit outlook, in the private trading system (PTS), around 5:00 p.m. on the 8th, shares were at 7,196 yen, down 471 yen from the closing price.

Hideki Yasuda, senior analyst at Toyo Research Advice, said he believes there is little need for an additional price increase this fiscal year, and that the stock price decline driven by rising costs is likely to run its course. To improve earnings, expanding software offerings is essential in addition to the console price. Software sales for the Switch 2 in the fiscal year ending March 2027 are expected to increase 23% from the previous fiscal year to 60 million units. The March release of "Poko a Pokémon" is performing well, and from June through July, new titles from popular series such as "Star Fox" and "Rhythm Heaven" are also scheduled. Nintendo often announces new titles via its video stream, "Nintendo Direct," and the next presentation is likely to provide clues about earnings and the stock price.

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