PS5 Will Soon Be Cheaper Than Switch 2 in Japan, But Is It Going to Make Any Difference?
Nintendo has announced a price increase for the Switch 2 in Japan starting May 25th, raising the Japan-only language-locked model by ¥10,000 (approximately $63), from ¥49,980 ($320) to ¥59,980 ($383). The company attributes the increase to “changes in market conditions,” citing rising memory costs driven by artificial intelligence demand and the global economic fallout from geopolitical tensions.
This price adjustment creates an unusual market situation in Japan: the PS5 will become cheaper than the Switch 2. Sony maintained its Japan-only PS5 language-locked console at ¥55,000 (~$351) following its own worldwide price increases last month, leaving it ¥4,000 less expensive than Nintendo’s handheld-hybrid console.
The timing is notable given that console manufacturers typically face significant pressure to maintain hardware pricing. Nintendo’s decision to increase prices amid existing economic concerns demonstrates the acute pressure from manufacturing cost increases, particularly regarding memory components. The geopolitical and AI-driven supply chain challenges cited suggest industry-wide issues affecting semiconductor pricing.
The price inversion—where a dedicated home console is cheaper than a hybrid handheld—raises questions about market positioning and consumer perception in Japan, a key market for Nintendo. Whether this price disparity will meaningfully impact Switch 2 sales or purchasing decisions remains to be seen, but it represents a notable shift in the console market’s pricing landscape.