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 September 1, up from the current price of $629.99.
The company cited changes in market conditions and global business outlook as reasons for increasing the price of the Switch 2 in Japan to 59,980 yen from 49,980 yen effective May 25. Nintendo’s decision to raise prices is influenced by higher component costs and factors such as exchange rates, according to company president Shuntaro Furukawa.
The hike in prices is a response to challenges faced by major Japanese exporters, including tariff increases by U.S. President Donald Trump and escalating costs exacerbated by the situation in Iran. Nintendo and Sony are contending with rising memory chip prices, driven by the AI boom limiting chip supply and causing disruptions in the tech industry.
Memory chip prices have surged, doubling in the first quarter and expected to climb further in the current quarter due to increased demand for AI data centers impacting supply chains for smartphones, laptops, and automobiles.
Nintendo indicated that higher component costs, particularly for memory, and the effects of tariffs are anticipated to add approximately 100 billion yen ($874 million Cdn) to costs in the current financial year.
Analysts suggest that the decision to raise prices reflects the severity of the rise in memory costs and the lack of immediate relief from cost pressures. Nintendo expects profitability to remain stable compared to the previous financial year despite the price increases.
While the demand for the Switch 2 remains strong, Nintendo reported a net profit of 424 billion yen for the fiscal year ending in March, with annual sales increasing significantly. Despite projecting a decline in profit for the upcoming fiscal year, Nintendo anticipates continued growth in software sales for the Switch 2.
Nintendo plans to release more software titles for the Switch 2, including those from external developers, to maintain the momentum in sales. Following the earnings announcement, Nintendo’s stock price surged by 3.6 percent.
The company expects to sell 16.5 million Switch 2 units in the fiscal year through March 2027, with software sales projected to increase further. Nintendo remains optimistic about the future of the Switch 2 and is focused on expanding its software library to attract more users.
