Nintendo will hike the retail price of the Switch 2 after forecasting a decline in sales for its flagship console as the memory chip crunch hits the Japanese gaming giant.
The company said on Friday it expects to sell 16.5 million units of the Switch 2 in its fiscal year ended Mar. 31, 2027. That is a decline from the 19.86 million units sold in the fiscal year just ended.
Meanwhile, the company's forecasts for the current year were far below analyst estimates.
Nintendo said the price of the Switch 2 in the U.S. will rise by $50 from $449.99 to $499.99, from Sept. 1. In Japan, Nintendo will hike the price from 49,980 yen to 59,980 yen, effective May. 25. Nintendo also said prices for the Switch 2 will increase in Canada and Europe.
Nintendo said the rise in console prices is "In light of changes in market conditions" and after the company considered "the global business outlook."
Switch 2 consoles use memory chips that have seen unprecedented price rises driven by the global AI data center buildout. Nintendo has been forced to raise console prices following rival Sony, which announced price increases of up to $150 on its flagship PlayStation 5 in March.
Nintendo shares have been under pressure since hitting a record high above 14,000 yen in August, falling nearly 50% since that peak as the memory crunch has impacted the company.
On Friday, Nintendo said its financial forecast for the year ended March 2027 reflects an approximately 100 billion yen impact due to rising component prices, particularly for memory, and "tariff measures."
This is breaking news. Please refresh for updates.
