Nintendo explains Switch 2 price increase

Nintendo said on May 8 that it would raise the price of the Switch 2 in major markets after what it called changes in market conditions, and the company has since told media and investors that the pressure behind the move may not fade soon. In the United States, the console’s suggested retail price will rise to $499.99 from $449.99 on September 1, according to Nintendo’s notice. In Japan, the Japanese-language model will rise to ¥59,980 from ¥49,980 on May 25. Europe and Canada also face increases on September 1, Nintendo said. ### Why did Nintendo say it raised the Switch 2 price? Nintendo said in its May 8 notice that the revision was made “in light of changes in market conditions” and after considering the global business outlook. The company did not spell out every input in that notice, but it tied the move to a broader set of cost and outlook pressures rather than a single regional issue. (nintendo.co.jp) CNBC reported that Nintendo’s latest forecast reflects about ¥100 billion, or roughly $638 million, of impact from rising component prices — particularly memory — and tariff measures. Eurogamer reported that Nintendo later explained the increase to media in those terms and said the factors behind it could continue into next year. ### What exactly is changing, and when? (nintendo.co.jp) Nintendo said the U.S. Switch 2 price will rise by $50 to $499.99 on September 1, while Canada’s price will rise to C$679.99 from C$629.99. In Europe, Nintendo said the My Nintendo Store price will rise to €499.99 from €469.99 on the same date. Japan moves first. Nintendo said the Japanese-language Switch 2 will rise by ¥10,000 to ¥59,980 on May 25, while the multi-language version sold through My Nintendo Store will remain unchanged. (cnbc.com) Nintendo also said price revisions for Switch 2 and the original Switch are planned in other regions, with details to come from local overseas subsidiaries. The company separately said Nintendo Switch Online prices in Japan will rise on July 1, with South Korea also scheduled for subscription price revisions. (nintendo.co.jp) ### What did Shuntaro Furukawa tell investors and media? (nintendo.co.jp) Shuntaro Furukawa, Nintendo’s president and representative director, said the price increase would not fully offset the company’s higher costs, according to reports citing the company’s investor briefing and follow-up comments. Eurogamer quoted Nintendo as saying the issues responsible “could have an impact not only this year but next year as well.” (nintendo.co.jp) Nintendo’s own filings support that message. The company said the impact of “various changes in market conditions” is expected to extend over the medium to long term, language it used in the May 8 notice while laying out the regional timetable for the increases. ### Is Nintendo linking this only to tariffs? Nintendo’s public wording has been broader than tariffs alone. (eurogamer.net) The company’s notice referred to market conditions and the global business outlook, while its annual forecast, as reported by CNBC, included both rising component prices and tariff measures. Memory costs have been one visible part of that explanation. (nintendo.co.jp) CNBC reported that Switch 2 consoles use memory chips that have seen steep price increases, and said Nintendo’s forecast captured that pressure alongside tariffs. ### What does this mean for Nintendo’s next fiscal year? Nintendo said it expects to sell 16.5 million Switch 2 units in the fiscal year ending March 31, 2027, down from 19.86 million units sold in the fiscal year just ended. (nintendo.co.jp) CNBC reported that the company’s broader sales and profit outlook also came in below analyst expectations. May 25 is the first milestone in the rollout, when Japan’s revised hardware prices take effect. (cnbc.com) September 1 is the key date for the United States, Canada and Europe, and Nintendo said further regional details will come from its overseas subsidiaries. (nintendo.co.jp)