Hold onto your gaming devices because 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 go up to $679.99 Cdn from the current $629.99.
This increase in price is in line with a similar adjustment in Japan, where the price of the Switch 2 will rise to 59,980 yen from 49,980 yen as of May 25. Nintendo attributed this decision to changing market conditions and a consideration of the global business landscape.
Nintendo’s President, Shuntaro Furukawa, explained that the price hike is a response to higher component costs, including memory, and factors such as exchange rates. The company is not alone in facing challenges, as major Japanese exporters navigate escalating costs due to various factors, including U.S. President Donald Trump’s tariff increases and the conflict in Iran.
Both Nintendo and Sony are also grappling with the impact of soaring memory chip prices, driven by the artificial intelligence boom, which is straining chip supply and causing disruptions across the tech industry. Memory chip prices have doubled in the first quarter alone and are projected to increase up to 63% in the current quarter, primarily due to the demand for AI data centers affecting supply in smartphones, laptops, and automobiles.
Nintendo estimates that the rise in component costs, particularly memory, and the effects of tariffs will add approximately 100 billion yen ($874 million Cdn) to costs in the current fiscal year. This has prompted the company to adjust prices as a strategic move to maintain profitability in the face of ongoing cost pressures.
Despite the price hikes, Nintendo remains optimistic about the demand for the Switch 2, which contributed to a significant increase in net profit and sales for the company in the previous fiscal year. Looking ahead, Nintendo anticipates a slight decline in profit for the current fiscal year, considering the planned price adjustments.
The company expects to sell 16.5 million Switch 2 units in the fiscal year through March 2027, with software sales projected to continue growing. While initial sales of gaming consoles often see a decline over time, game software sales tend to increase. Nintendo’s unique hybrid console, the Switch 2, which functions as both a home console and a portable handheld, continues to attract consumers.
Nintendo is committed to releasing more software titles for the Switch 2 this year, including collaborations with other developers. Following the earnings announcement, Nintendo’s stock price experienced a 3.6% increase, reflecting positive investor sentiment in the company’s performance.
