Nintendo Switch 2 Price Hike Due to Memory Costs
Nintendo has announced a price increase for its forthcoming Switch 2 console, attributing this decision to escalating memory costs that are impacting profitability. The Japanese gaming giant also anticipates an 11% reduction in net sales and a 27% decrease in net profit for the current fiscal year. This price adjustment is a response to the fluctuating conditions in the semiconductor and memory sectors. As Nintendo gears up for the release of the successor to the immensely successful Switch, which has achieved sales exceeding 140 million units globally, it has not disclosed the exact new price or launch date. Analysts predict the Switch 2 will be priced around $500, up from the original Switch's $300. Following this announcement, Nintendo's stock experienced a decline.
Key facts
- Nintendo is raising the price of the Switch 2 due to rising memory costs.
- Nintendo forecast an 11% drop in net sales for the current fiscal year.
- Nintendo forecast a 27% decline in net profit for the current fiscal year.
- The Switch 2 is the successor to the original Switch, which sold over 140 million units.
- Analysts expect the Switch 2 to be priced around $500.
- The original Switch launched at $300.
- Rising memory and semiconductor costs are squeezing profits.
- Nintendo's shares fell following the announcement.
Entities
Institutions
- Nintendo
Locations
- Japan
Sources
- Quartz —