Hold onto your gaming devices as the Nintendo Switch 2 is set to become pricier. Nintendo announced in a recent news release that the price of the Nintendo Switch 2 in Canada will see a hike starting September 1. The new price will be $679.99 Cdn, up from the current price of $629.99.
The price increase for the Switch 2 in Japan will also be significant, with the price jumping to 59,980 yen from 49,980 yen starting May 25. Nintendo cited changes in market conditions and a consideration of the global business outlook as reasons for the price adjustment.
Nintendo President Shuntaro Furukawa explained that the decision to raise prices was influenced by higher component costs and factors like exchange rates. This move comes amidst challenges faced by major Japanese exporters due to tariff increases by U.S. President Donald Trump and other escalating costs worsened by geopolitical tensions.
Both Nintendo and Sony are grappling with soaring memory chip prices, as reported by Reuters. The surge in memory chip prices is driven by the demand for artificial intelligence applications, leading to supply constraints affecting various tech sectors including smartphones, laptops, and automobiles.
Nintendo expects the increased component costs, particularly memory, and the impact of tariffs, to add approximately 100 billion yen ($874 million Cdn) to costs in the current fiscal year. HSBC analyst Kazunori Ito indicated that this price hike reflects the severity of rising memory costs, suggesting that waiting for market conditions to improve is not a viable option.
Despite the price hikes, Nintendo remains optimistic about the demand for the Switch 2. The company reported a net profit of 424 billion yen ($3.7 billion Cdn) for the fiscal year ending in March, marking a significant increase from the previous year. Annual sales also surged, driven by sustained demand for the Switch 2, although sales for the first-generation Switch declined.
Nintendo’s financial outlook includes an 11% decline in profit for the fiscal year through March 2027, factoring in the planned price increases. The company projects sales of 16.5 million Switch 2 units in the upcoming fiscal year, with software sales expected to continue growing.
Nintendo’s stock price rose by 3.6% following the earnings announcement, reflecting investor confidence in the company’s performance. Nintendo is set to release more software titles for the Switch 2 this year, including offerings from third-party developers, to sustain consumer interest in the platform.
