Switch 2 price hike reportedly discussed ahead of Nintendo earnings
Nintendo Switch 2 could see a price increase less than a year after launch, according to Bloomberg. The report claims investors are putting pressure on Nintendo to adjust pricing as component, shipping and material costs affect console margins. Whether Nintendo leadership should listen to investors or its core consumer base is a great question that may be answered later this week (during the earnings call).
The Switch 2 is currently listed by Nintendo at $450 MSRP in the United States. Nintendo kept that price unchanged when US preorders opened last year, despite tariff concerns and higher accessory prices.
Investors vs. Gamers
Nintendo investors are concerned that the $450 Switch 2 is deeply unprofitable. US tech giants are buying up the world’s supply of key components like memory, while trade disruptions from the Middle East war are affecting the cost of shipping and even basic materials like plastics. Japanese peers like Capcom, Koei Tecmo and indeed Sony are also under pressure.
Bloomberg reports that investors are concerned the console is being sold at a loss. Memory supply is cited as one of the cost pressures, with AI demand from major tech companies affecting availability of key components. Bloomberg also claims Nintendo shares have declined for five straight months, marking the company’s longest losing streak since 2016.
Source: Bloomberg
A possible increase of $50 to $100 is described as the most likely range by Bloomberg. The report also mentions the cheaper Japan-only Switch 2 model, priced around ¥50,000, as another possible target for adjustment. Nintendo also sells a multilingual model in Japan at a higher price.
Nintendo is not the only console maker facing higher hardware costs. Sony raised prices for PlayStation 5, PS5 Pro and PlayStation Portal in March, with the PS5 Pro increasing to $899.99 in the US. The new pricing took effect on April 2.
Despite current market challenges Switch 2 became the fastest-selling home console in US history after seven months on the market.
Source: Bloomberg
