Nintendo raises Switch 2 price $50 to $499.99

Nintendo has announced a $50 price increase on its Switch 2 console in the United States, with the retail price rising from $449.99 to $499.99 starting September 1. The Japanese gaming company is also raising prices in Japan from 49,980 yen to 59,980 yen effective May 25, as well as implementing price increases in Canada and Europe. The company cited "changes in market conditions" and "the global business outlook" as justification for the hike, driven primarily by unprecedented rises in memory chip prices caused by the global AI data center buildout. The price increase comes as Nintendo forecasts a decline in Switch 2 sales, expecting to sell 16.5 million units in the fiscal year ending March 31, 2027, down from the 19.86 million units sold in the previous fiscal year. The company's annual operating profit rose 27.5 percent to 360.1 billion yen in the last financial year, falling below analyst estimates. Nintendo estimates that rising component prices, particularly memory chips, and "tariff measures" will impact its financials by approximately 100 billion yen in the current forecast period. Investors have grown concerned about the potential impact of the memory price surge on Nintendo's profit margins. Nintendo follows rival Sony in raising console prices, as Sony announced increases of up to $150 on its PlayStation 5 in March. Nintendo shares have been under significant pressure, falling nearly 50 percent from a record high above 14,000 yen in August. The Switch 2 launched to strong demand earlier this year, with fans lining up for hours at stores from Tokyo to Manhattan, marking one of the biggest global gadget debuts since Apple's iPhone launches. Despite the challenges, Nintendo has scored recent hits including "Pokemon Pokopia" and the latest "Super Mario" movie, which has resonated with audiences despite critical reception.