Hold onto your gaming systems as the Nintendo Switch 2 is set to become pricier. Nintendo announced a price hike for the Nintendo Switch 2 in Canada starting on Sept. 1, with the new price set at $679.99 Cdn, up from the current price of $629.99.
The Switch 2 price in Japan will also see an increase to 59,980 yen from 49,980 yen starting May 25. Nintendo attributed the price adjustment to changes in market conditions and a consideration of the global business outlook. President Shuntaro Furukawa mentioned that higher component costs and fluctuating exchange rates influenced the decision.
Major Japanese exporters, including Nintendo, are facing challenges due to U.S. President Donald Trump’s tariff increases and other rising costs exacerbated by the situation in Iran. Both Nintendo and Sony are grappling with soaring memory chip prices, which are affecting the tech sector as the demand for artificial intelligence (AI) technologies limits chip supply.
Memory chip prices surged in the first quarter, doubling from the previous quarter, and are projected to increase by up to 63% in the current quarter due to high demand from AI data centers, impacting supply for smartphones, laptops, and vehicles.
Nintendo anticipates an additional cost of approximately 100 billion yen ($874 million Cdn) in the current financial year due to higher component costs, particularly memory, and the effects of tariffs. This decision indicates the severity of rising memory costs and suggests that market conditions are unlikely to improve soon.
Despite the price adjustments, Nintendo expects profitability to remain relatively stable compared to the previous financial year. The company reported a net profit of 424 billion yen ($3.7 billion Cdn) for the fiscal year ending in March, marking an increase from the previous year.
Annual sales surged by 99% to 2.3 trillion yen ($20.1 billion Cdn) from 1.2 trillion yen a year earlier, driven by strong demand for the Switch 2, while sales for the first-generation Switch declined. Nintendo forecasts an 11% profit decline for the fiscal year through March 2027, projecting sales of 16.5 million Switch 2 units and continued growth in software sales.
Nintendo’s stock price rose by 3.6% following the earnings announcement. The Switch 2, a hybrid console that can be used both as a home system and a portable device, is expected to receive more software titles this year, including offerings from third-party developers.