Nintendo is set to raise the price of Switch 2 after predictions of a sharp decline in sales for Switch 2, a memory chip shortage affecting the Japanese tech giant.
On Friday, the company released a statement, which read, it anticipates selling 16.5 million Switch 2 units during its financial year ending March 31, 2027, marking a major decline from the 9.86 million sold in the previous fiscal year.
In the US, Nintendo plans to surge the Switch 2’s price by $50, adjusting from $449.99 to $499.99, from September 1.
In Japan, the price will rise from JPY 49,980 to JPY 59,980, starting from May 25. This significant price surge will also affect Canada and Europe.
Nintendo attributed the price increase to "changes in market conditions" following an evaluation of "the global business climate."
Why is Nintendo raising the Switch 2 price?
Nintendo "sincerely apologised" for the impact on customers, while attributing an abrupt raise to "changes in market conditions" following an evaluation of "the global business climate."
Nintendo follows suit after rival Sony revealed up to a $150 increase in the price of its PlayStation 5 in March.
Since reaching a record high above JPY 14,000 in August, Nintendo shares have seen a great pressure, facing nearly 50% decline as the memory shortage affects the company.
On Friday, Nintendo disclosed that its fiscal forecast for the year concluding in March 2027 indicates an estimated JPY 100 billion ($637.8 million) impact from rising component costs.
The company's projections fell short of analyst anticipations. Now, Nintendo foresees net sales of JPY 2.05 trillion for the year.
Moreover, the company expects a 27% drop in net profit to JPY 310 billion, which is under analyst forecasts of 418.5 billion yen.
