Topline
Nintendo announced global price hikes for its Switch 2 game consoles on Friday, blaming “market conditions,” following similar moves by PlayStation-maker Sony and Xbox-maker Microsoft amid an AI-fueled chip supply crunch that is impacting game consoles and other consumer electronics.
Key Facts
Nintendo said the U.S. Switch 2 price will increase from $449.99 to $499.99 starting in September, along with similar increases in Canada and Europe.
The Mario-maker said the hike was in “light of changes in market conditions, and after considering the global business outlook.”
Nintendo had raised prices of the older first-generation Switch console last year, but this is the Switch 2’s first price hike since it launched in June last year.
In the statement, Nintendo apologized for the “impact these price revisions may have on our customers and other stakeholders.”
The price hike followed the Japanese console maker’s latest earnings report, where it announced it has sold 19.86 million units so far—making it the fastest-selling home console of all time.
Nintendo, however, is projecting a slight decline next year, expecting to sell 16.5 million units, likely due to the price hikes.
What Do We Know About Other Console Price Hikes?
In March, Sony announced it was hiking the prices of its PlayStation 5 family of consoles by between $100-$150. The PlayStation 5’s cheapest model—the Digital Edition with no disc drive— now costs $599.99, while the version with the disc drive costs $649.99. The more powerful PlayStation 5 Pro’s price rose from $749.99 to $899.99. This was Sony’s second PlayStation 5 price hike in 12 months. The Microsoft Xbox also saw two major price hikes last year with its cheapest model, the Xbox Series S rising from $299 to $379 at first before going up again to $399.99. The more powerful Xbox Series X price rose from $499.99 to $599.99 and then $649.99.
How Has Nintendo’s Stock Been Impacted?
Nintendo’s stock price rose 3.55% to ¥7,667.00 ($49) on Friday after the earnings and price hike announcement. Despite a major recent success with a new Pokemon game Pokopia, Nintendo’s stock has been down more than 28% since the start of this year amid concerns about the Switch 2’s profitability. Bloomberg reported earlier this week that Nintendo’s shareholders were worried that at $450 the Switch 2 was “deeply unprofitable” following the recent memory chip supply shortages and price hikes. The report noted that the company’s margins have been hit further by the Iran war as shipping prices and the cost of materials like plastics have also gone up.
Further Reading
Sony Raises PlayStation Prices By $100—Second Price Hike In A Year (Forbes)
Nintendo Under Pressure to Raise Switch 2 Prices to Protect Margins (Bloomberg)
