Hold onto your gaming devices as the cost of the Nintendo Switch 2 is set to rise. Nintendo announced that the price of the Nintendo Switch 2 in Canada will go up to $679.99 Cdn starting from September 1, up from the current price of $629.99.
The price adjustment for the Switch 2 in Japan will also come into effect on May 25, with the new price set at 59,980 yen, up from 49,980 yen. Nintendo explained that this decision was made considering market changes and the global business outlook.
Nintendo’s president, Shuntaro Furukawa, attributed the price increase to rising component costs, exchange rate fluctuations, and other market factors affecting their global business operations.
Various Japanese exporters, including Nintendo and Sony, are facing challenges due to increased costs caused by factors such as U.S. President Donald Trump’s tariff policies and the ongoing tensions in Iran. Both companies are also feeling the impact of soaring memory chip prices, which are affecting the supply chain in the tech industry.
The surge in memory chip prices, driven by the demand for AI data centers, has led to significant cost implications for Nintendo. The company estimates an additional 100 billion yen ($874 million Cdn) in costs for the current fiscal year due to higher component expenses and tariffs.
According to HSBC analyst Kazunori Ito, the decision to raise prices indicates the severity of the memory cost increases and the lack of immediate relief in sight. Nintendo aims to maintain profitability despite the price hikes, with Furukawa mentioning that profitability is expected to remain consistent with the previous financial year.
Nintendo reported a net profit of 424 billion yen ($3.7 billion Cdn) for the fiscal year ending in March, driven by strong demand for the Switch 2. Despite a decline in sales of the first-generation Switch, annual sales surged to 2.3 trillion yen ($20.1 billion Cdn), representing a 99% increase from the previous year.
Looking ahead, Nintendo anticipates a slight decline in profit for the fiscal year ending in March 2027, factoring in the planned price adjustments. The company predicts sales of 16.5 million Switch 2 units and continued growth in software sales. Nintendo’s stock price rose by 3.6% following the earnings announcement.
Nintendo plans to release more software titles for the Switch 2 this year, including offerings from third-party developers. The Switch, known for its dual functionality as a home console and portable handheld device, continues to attract consumers with its unique gaming experience.