Nintendo Anticipates Lower Sales for Switch 2 After Price Hike

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Nintendo has announced a price increase for the Switch 2, with North America seeing a $50 increase starting September 1.
The Switch 2 has already sold over 20 million units globally and is projected to sell approximately 16.5 million units in the current fiscal year.
Nintendos software sales have also increased significantly this year, with top-selling games such as Mario Kart World, Donkey Kong Bananza, and Pokemon Legends: ZA.
Despite a strong performance in 2026, Nintendo anticipates an approximate 11.4% decrease in revenue next year due to rising costs and global economic factors.

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Donkey Kong Bananza (Nintendo Switch 2)

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Nintendo has announced a global price increase for the Nintendo Switch 2, alongside projections of a sales slowdown for the new console. The Switch 2 will be priced in the $499 range in North America, a change implemented due to prevailing market conditions. This adjustment follows a period of strong sales performance and significant revenue growth for Nintendo. The company reported that the Switch 2 has already surpassed 20 million units sold, a milestone reinforcing its successful launch. Despite this strong start, Nintendo anticipates a deceleration in sales momentum in the coming months. The new Switch model includes a Mario Kart World upload transfer feature. Nintendo forecasts selling approximately 16.5 million Switch 2 units in the current fiscal year, a decrease from the 19.86 million units sold in the previous year. This anticipated drop in hardware sales is reflected in Nintendo’s financial planning, with projections indicating a potential 10% decrease in profits by March 2027, totaling approximately 13 billion yen.

The price adjustments for the Switch 2 are set to take effect globally. In the U.S. and Canada, the price will increase by $50 starting September 1. Europe will see a similar increase, while Japan’s price hike will begin on May 25. These increases are attributed to rising costs, including those influenced by competitors like Sony for the PlayStation 5, as well as increased memory costs and U.S. tariffs. The PS5 has seen a price increase of over $150 in the past year. Nintendo shipped 2.49 million Switch 2 units in the April to June 2026 quarter. Over the first three quarters of the last fiscal year, the console sold 19.86 million units. The company predicts sales of 16.5 million units for the next fiscal year, a decline from the previous year’s figures.

Beyond hardware, Nintendo’s software sales have also seen an increase. This year, 185.62 million software units (encompassing both Switch and Switch 2) were sold, compared to 155.41 million units last year (Switch only). Top-selling games include Mario Kart World with 14.7 million units sold, Donkey Kong Bananza with 4.5 million units, and Pokemon Legends: ZA with 8.5 million units. Tomodachi Life: Living the Dream achieved over 3.8 million unit sales within its first two weeks of release. Nintendo is optimistic about future software performance, projecting 60 million Switch 2 game sales by the fiscal year ending March 2027, a 23% increase from the previous 48.7 million. The company also plans to release more software for the Switch 2 this year, with contributions from third-party developers. The Super Mario Galaxy movie has grossed over $800 million in its initial four weeks.

Increased Nintendo Revenue for 2026, but Projected Decrease Due to Costs and Global Economic Factors in Coming Year

Nintendo’s revenue for 2026 experienced a substantial increase of 98.6%, reaching 2.3 trillion yen ($14.7 billion), compared to the prior year. However, the company anticipates an approximate 11.4% decrease in revenue next year. This is due to an estimated 100 billion yen in additional costs stemming from rising component prices, particularly for memory, and tariff measures. The Switch 2 packaging includes game cards with a gamekey card label. Despite the anticipated sales deceleration and increased costs, Nintendo’s financial projections indicate that Switch 2 sales are still expected to surpass those of the original Switch at a comparable point in its lifecycle. Analysts suggest that factors beyond the price increase, such as overall cost pressures, the global economic climate, and potential demand fluctuations, could also influence hardware performance. Nevertheless, Nintendo’s shares closed up 3.5% on Friday, reflecting the strong quarterly results and market expectations for the remainder of the year.

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