Nintendo forecasts a 16.8% drop in Switch 2 sales for fiscal 2027 due to rising memory chip costs and market conditions.
Nintendo will increase the U.S. price of its upcoming Switch 2 console by $50 to $499.99 starting September 1, citing rising memory chip costs and shifting market conditions. The Japanese gaming company also announced price hikes in Japan, Canada, and Europe, with Japan’s price rising from 49,980 yen to 59,980 yen effective May 25.
The company expects to sell 16.5 million units of the Switch 2 in the fiscal year ending March 31, 2027, down from 19.86 million units sold in the previous fiscal year. Nintendo’s financial forecast for the period includes a 100 billion yen ($637.8 million) impact from the memory chip crunch, which has driven up costs across the industry.
Nintendo follows Sony, which raised PlayStation 5 prices by up to $150 in March. Shares of Nintendo have fallen nearly 50% since peaking above 14,000 yen in August, reflecting broader concerns over the impact of memory chip shortages on the sector.