Hold onto your gaming devices as the cost of the Nintendo Switch 2 is set to rise. Nintendo announced that starting September 1, the price of the Nintendo Switch 2 in Canada will increase from $629.99 to $679.99. Similarly, in Japan, the price will go up from 49,980 yen to 59,980 yen effective May 25. This decision was made by Nintendo due to changes in market conditions and a consideration of the global business outlook.
Shuntaro Furukawa, the president of Nintendo, cited higher component costs, exchange rate fluctuations, and other factors as reasons for the price hike. The increase in memory chip prices, as well as challenges caused by U.S. President Donald Trump’s tariff increases and other rising costs due to global events, have impacted major Japanese exporters like Nintendo and Sony.
Memory chip prices have surged, doubling in the first quarter alone and expected to climb even higher in the current quarter due to increased demand for AI data centers. Nintendo estimates that these higher component costs, especially for memory, and the impact of tariffs, could add approximately 100 billion yen ($874 million Cdn) to their costs in the current financial year.
Despite the price hikes, Nintendo reported robust demand for the Switch 2, leading to a net profit increase of 424 billion yen ($3.7 billion Cdn) for the fiscal year ending in March. Annual sales also saw a significant rise to 2.3 trillion yen ($20.1 billion Cdn), with expectations of a slight decline in profit for the upcoming fiscal year due to the planned price adjustments.
Nintendo anticipates selling 16.5 million Switch 2 units by March 2027, accompanied by continued growth in software sales. The company’s stock price rose by 3.6 percent following the earnings announcement, signaling positive investor sentiment. Nintendo plans to introduce more software titles for the Switch 2, enhancing the gaming experience for users.