Hold onto your gaming consoles as the upcoming Nintendo Switch 2 is set to receive a price increase. Nintendo announced that starting September 1, the price of the Nintendo Switch 2 in Canada will rise to $679.99 Cdn from its current price of $629.99.
The price hike in Japan will see the Nintendo Switch 2 costing 59,980 yen, effective May 25, up from 49,980 yen. This decision by Nintendo is attributed to changes in market conditions and a consideration of the global business outlook. President Shuntaro Furukawa stated that the increased costs of components, including higher memory chip prices and exchange rates, influenced the price adjustment.
Major Japanese exporters, including Nintendo and Sony, are facing challenges due to U.S. President Donald Trump’s tariff increases and rising costs exacerbated by the situation in Iran. Both companies are also grappling with surging memory chip prices as the demand for artificial intelligence technology restricts chip supply, leading to disruptions across the tech industry.
Memory chip prices have doubled in the first quarter alone and are predicted to increase by up to 63 percent in the current quarter due to high demand for AI data centers, affecting the supply chain for smartphones, laptops, and automobiles.
Nintendo estimates that the higher component costs, particularly for memory chips, and the impact of tariffs will add approximately 100 billion yen ($874 million Cdn) to costs in the current fiscal year. Analysts suggest that this move reflects the severity of rising memory costs and the unlikelihood of cost pressures easing in the near future.
Despite the price hikes, Nintendo anticipates that profitability will remain relatively stable compared to the previous financial year. The company reported a net profit of 424 billion yen ($3.7 billion Cdn) for the fiscal year ending in March, with annual sales rising by 99 percent to 2.3 trillion yen ($20.1 billion Cdn) driven by demand for the Switch 2.
Nintendo projects an 11 percent decrease in profit for the fiscal year through March 2027, expecting to sell 16.5 million Switch 2 units, down from 19.86 million in the previous fiscal year. However, software sales for the Switch 2 are forecasted to grow, with Nintendo promising more titles from various creators.
Following the earnings announcement, Nintendo’s stock price surged by 3.6 percent, reflecting positive market sentiment towards the company’s performance.
The Switch 2 is a versatile gaming console that can function as a home console connected to a display or as a portable handheld. Nintendo’s commitment to delivering more software titles for the Switch 2 is expected to drive continued interest in the platform.
