Hold onto your gaming consoles as the cost of the Nintendo Switch 2 is set to rise. Nintendo recently announced that the price of the Nintendo Switch 2 in Canada will see an increase starting September 1. The new price will be $679.99 Cdn, up from the current price of $629.99.
The price adjustment for the Switch 2 in Japan will also take effect on May 25, with the price rising to 59,980 yen from 49,980 yen. Nintendo stated that this decision was influenced by market changes and a consideration of the global business outlook. The company’s president, Shuntaro Furukawa, attributed the price increase to higher component costs and various factors such as exchange rates.
Major Japanese exporters are facing challenges due to tariff hikes by U.S. President Donald Trump and increased costs exacerbated by the situation in Iran. Both Nintendo and Sony are grappling with rising memory chip prices, impacting their operations. The surge in memory chip prices, driven by AI data center demand, is affecting supply chains for smartphones, laptops, and automobiles.
Nintendo anticipates an additional cost of approximately 100 billion yen ($874 million Cdn) in the current fiscal year due to higher component costs, particularly memory, and the impact of tariffs. This situation led to the decision to raise prices as the company foresees no immediate relief from these cost pressures.
Despite the price hikes, Nintendo expects profitability to remain relatively unchanged from 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, up from nearly 279 billion yen the previous year. Annual sales surged by 99% to 2.3 trillion yen ($20.1 billion Cdn) from 1.2 trillion yen in the previous year, driven by sustained demand for the Switch 2.
Looking ahead, Nintendo projects an 11% decline in profit for the fiscal year ending in March 2027, estimating sales of 16.5 million Switch 2 units and a growth in software sales. The company plans to introduce more software titles for the Switch 2 this year, including contributions from third-party developers.
Following the earnings announcement, Nintendo’s stock price rose by 3.6%. The gaming industry typically sees strong initial sales for new consoles, followed by a decline, while software sales continue to grow. The Nintendo Switch 2, known for its hybrid functionality, remains popular among consumers as both a home console and a portable handheld device.