Nintendo explains why it raised the price of Switch 2, and says the issues responsible “could have an impact not only this year but next year as well”

Nintendo has raised the price of Switch 2 to maintain profitability amid sustained increases in component and memory costs. President Shuntaro Furukawa explained during an earnings call that the company does not anticipate these cost pressures to subside in the near future, with potential impacts extending into the following fiscal year.

The price increases will be implemented across key markets including Japan, Canada, Europe, and the United States. Furukawa acknowledged that this creates a barrier to entry for some consumers but was deemed necessary to maintain “a healthy earnings structure” for the company.

Furukawa noted that if the cost increases were temporary, Nintendo could have pursued alternatives such as improving productivity and expanding the installed base while maintaining existing prices. However, given the persistent nature of the cost pressures, price increases became the preferred strategy.

This move comes as the Switch 2 has exceeded sales expectations, with nearly 20 million units sold worldwide against Nintendo’s initial forecast of 15 million units across the fiscal year.

Nintendo explains why it raised the price of Switch 2, and says the issues responsible “could have an impact not only this year but next year as well”

Sources