Full Breakdown
Nintendo Announces Global Switch 2 Price Increase Amid Falling Share Price and Revised Sales Forecast
5/13/2026, 12:20:16 AM
Core Event: Price Revision and Revised FY 2027 Outlook
Nintendo Co. announced a worldwide increase in the Manufacturer’s Suggested Retail Price (MSRP) of its Switch 2 console. Effective September 1 2026, the U.S. price rises from $449.99 to $499.99, while Canada sees a jump from $629.99 to $679.99 and Europe from €469.99 to €499.99. Japan’s adjustment precedes the global rollout on May 25 2026, raising the price by ¥10,000 (from ¥49,980 to ¥59,980). In the same financial release, Nintendo projected FY 2027 hardware sales of 16.5 million units, down from the 19.86 million units sold in the first year.
Data & Statistics
- Price increase: + $50 (U.S.), + $50 (Canada), + €30 (Europe), + ¥10,000 (Japan).
- Share-price reaction: Tokyo closing price fell 8.4 % to ¥7,020, the lowest level since August 2024; other reports cite drops of 8 % and 8.44 %.
- Sales forecast: 16.5 million units for FY 2027, representing a 16.9 % decline year-over-year.
- Component cost drivers: global memory-chip shortage (“RAMageddon”) linked to AI-infrastructure demand, higher crude-oil prices, and a weak yen.
Official Statements & Responses
Nintendo’s press release framed the revision as a response to “various changes in market conditions, which are expected to extend over the medium to long term.” The company apologized for “the considerable inconvenience” to customers and pledged to “prepare a robust software line-up to enhance the Switch 2 ownership value.” Executives emphasized that the increase does not fully offset all cost pressures, but a larger hike was avoided to preserve market momentum.
Criticism & Opposition
Analysts and investors expressed concern that the price hike could suppress demand. Kantan Games CEO Serkan Toto noted that “Nintendo is predicting Switch 2 hardware sales to go down this fiscal year — instead of going up as it usually is the case with new consoles.” Share-price volatility and a perceived lack of AAA titles were also cited as factors behind the decline. A class-action lawsuit has been filed alleging that tariff refunds should be returned to customers who paid higher prices for Switch 2 accessories and earlier-generation consoles.
Timeline
- May 25 2026: Japan price increase announced and implemented.
- May 25 2026: Financial results released, including revised FY 2027 sales forecast.
- September 1 2026: U.S., Canada, Europe price increase takes effect.
Conflicting Reports & Gaps
Sources differ on the exact magnitude of the share-price drop (8 % vs 8.44 % vs 8.4 %). Sales-decline figures are reported as a raw unit reduction to 16.5 million and as a percentage decline of 16.9 %; both figures appear in separate outlets. No independent verification of the memory-chip cost impact is provided beyond company statements.
What’s Next
Nintendo will launch limited “Choose Your Game” bundles (Mario Kart World, Donkey Kong Bananza, Pokémon Pokopia) at the new $500 price point. Additional titles slated for the second half of FY 2027 include Yoshi and the Mysterious Book, Star Fox, Rhythm Heaven Groove, Splatoon Raiders, and Fire Emblem : Fortune’s Weave. President Shuntaro Furukawa indicated the company remains flexible and may adjust pricing again if component costs persist.
Verbatim Quotes
- “Nintendo is predicting Switch 2 hardware sales to go down this fiscal year — instead of going up as it usually is the case with new consoles,” — Serkan Toto, CEO, Kantan Games
- “This is in response to various changes in market conditions, which are expected to extend over the medium to long term,” — Nintendo press release
- “We sincerely apologize to our customers for the considerable inconvenience and trouble this will cause,” — Shuntaro Furukawa, President, Nintendo
- “If the cost increase were temporary and expected to subside relatively quickly, we could have pursued corporate efforts such as improving production efficiency and aimed to expand the installed base while maintaining the hardware price," Furukawa suggested.” — Shuntaro Furukawa
- “However, the most important thing in the gaming console business is to provide engaging gameplay that offers value beyond the price.” — Shuntaro Furukawa
- “We will prepare a robust software line-up to enhance the Switch 2 ownership value,” — Shuntaro Furukawa
