Nintendo has announced plans to raise the price of its Switch 2 console as rising memory chip costs and global supply pressures continue to impact the gaming industry.
The company said the price of the Switch 2 will increase by 20 per cent in Japan from May 25, and by 11 per cent in the United States from September 1, bringing the US price to $499.99. In Europe, the console will rise by six per cent to 499.99 euros.
The announcement comes alongside a warning that Nintendo’s net profit for the financial year ending March is expected to fall by 27 per cent to 310 billion yen ($1.98 billion), with sales projected at 2.05 trillion yen.
Operating profit is forecast at 370 billion yen, significantly below market expectations of around 480 billion yen, according to analyst estimates cited in reports.
Despite the weaker outlook, Nintendo said its Switch 2 launch had performed strongly, selling nearly 20 million units since release, supported by titles such as “Pokemon Pokopia,” “Mario Kart World,” and “Donkey Kong Bananza.”
Meanwhile, Sony Group Corporation reported a more optimistic outlook for its gaming division, projecting a 13 per cent rise in income even as PlayStation 5 sales continue to decline.
The company sold 16 million units of the PlayStation 5 in the last fiscal year, down from 18.5 million the previous year, reflecting the console’s maturing lifecycle.
Analysts say Sony is better positioned to absorb rising memory costs due to its strong software ecosystem and high-margin digital services.
Industry experts also point to the anticipated release of Grand Theft Auto VI in November as a potential major boost for PlayStation hardware sales.
However, analysts warn that Nintendo faces greater challenges, with its new console appeal seen as more price-sensitive and its early game lineup considered weaker compared to earlier generations.
The broader gaming industry has been hit by rising memory chip prices driven by the artificial intelligence boom, alongside ongoing global supply chain disruptions affecting electronics manufacturing.
