Nintendo raises Switch 2 prices as memory costs squeeze profit outlook

Nintendo expects a ¥100 billion hit from rising memory prices and tariffs, forecasting declines in console and software sales for the current fiscal year. The company announced price increases for its upcoming Switch 2 console to offset these cost pressures. The profit outlook has been squeezed by higher memory component costs and trade tariffs affecting manufacturing and supply chains. Nintendo's revised guidance reflects broader challenges in the gaming hardware market, where component shortages and inflation have impacted margins across the industry. The Switch 2, a successor to the popular hybrid console, is expected to launch with a higher retail price than its predecessor. Nintendo did not provide specific pricing details but confirmed the increase is necessary to maintain profitability amid rising input costs. The company also lowered its sales forecasts for both hardware and software units for the fiscal year ending March 2025. This marks a rare price hike for Nintendo, which has historically kept console prices stable throughout product lifecycles. The move signals that even dominant players in the gaming sector are not immune to global economic pressures on manufacturing and logistics.