Nintendo rules out further Switch 2 price hikes as profit falls 16 per cent

MUMBAI: Nintendo’s Switch 2 is facing a bit of a power cut in its sales momentum, but the company is not planning to turn up the price dial again. With console shipments slowing and operating profit slipping, the Japanese gaming giant has ruled out further price increases, even as rising memory costs and a relatively thin release calendar put pressure on its latest hardware.

Nintendo president Shuntaro Furukawa said the company had sufficient memory supplies to meet its sales forecast of 16.5 million Switch 2 units for the financial year ending March 2027. He also indicated that Nintendo was not considering further price changes, following the price increase introduced in September.

The reassurance comes against a weaker set of quarterly numbers. Nintendo’s operating profit fell 16 per cent to 73.9 billion yen, or approximately $467 million, in the three months ended 30 September 2026. Sales declined 15 per cent over the same period.

The company sold 2.67 million Switch 2 consoles during the quarter, a 41 per cent decline from the year-ago period. Shipments were also down from the 3.82 million units sold in the first quarter of the current financial year, covering April to June 2026.

The slowdown comes as the wider gaming industry grapples with higher memory costs, a supply-side challenge often described as the ‘RAMpocalypse’. Nintendo raised the Switch 2’s price in September, following similar price increases by Microsoft and Sony for their consoles. Furukawa’s latest comments suggest that, for now, the company intends to absorb the pressure rather than pass on another increase to customers.

Nintendo’s half-year figures, covering April to September 2026, show 6.49 million Switch 2 units sold, compared with 10.36 million in the corresponding period last year.

However, the cumulative picture is less gloomy. Lifetime Switch 2 sales have reached 26.35 million units, and the console is still ahead of the original Switch when sales are compared across the same period after launch.

That distinction matters because the Switch 2 enjoyed a record-breaking debut, helped by strong demand and ample stock availability. It became the fastest-selling Nintendo hardware of all time, setting a particularly high bar for subsequent quarters. The year-on-year decline is therefore being measured against an unusually strong launch period.

Investors, however, are looking beyond the launch numbers. Concerns remain over the memory supply situation and the lack of high-profile titles during the console’s second year, both of which could affect its momentum.

Nintendo is hoping its latest release can provide a timely boost. The Ocarina of Time remake launched on 5 November, giving the Switch 2 a major title to take into the holiday shopping season.

The company’s share price rose 8.13 per cent on Thursday following the financial results and the game’s release, offering a positive market response despite the weaker operating performance and console sales figures.

Yet the release calendar remains a talking point. Serkan Toto, chief executive of Kantan Games, told CNBC that Nintendo’s only real blockbuster for the current financial year was the Ocarina of Time remake. He argued that this may not be enough to satisfy investors, particularly with the console now carrying a higher price tag.

Toto also pointed to the difficulty of selling gaming hardware in the current market, where major game releases play a significant role in sustaining demand. He said Nintendo would need to deliver more big titles in the next financial year to keep Switch 2 sales momentum going.

Nintendo’s software sales show that its catalogue continues to attract buyers, although performance varies across titles.

Tomodachi Life: Living the Dream sold 8.81 million units, while Rhythm Heaven Groove recorded sales of 2.89 million units and Splatoon Raiders sold 2.42 million units.

Mario Kart World, which launched alongside the Switch 2 last year, continued to sell steadily, shifting another 1.78 million units during the first two quarters of the current financial year.

Other releases included StarFox, which launched in June and sold 1.17 million units, and Fire Emblem: Fortune’s Weave, released in September, which sold 1.34 million units.

Looking further ahead, Nintendo is expected to bring more major titles to the platform in 2027. Pokémon Winds and Pokémon Waves have been confirmed for next year, while fans are also hoping for the next mainline Super Mario game.

For Nintendo, the challenge is now to balance hardware costs, software releases and consumer demand without making the Switch 2 more expensive for buyers. Furukawa’s assurance on memory availability provides some comfort against the immediate supply concerns, while the 16.5 million-unit annual forecast remains the company’s stated target.

But the combination of a 41 per cent quarterly decline in console sales, a 16 per cent fall in operating profit and investor concerns over the release pipeline shows why the next few quarters matter. The Switch 2 still has a sizeable installed base and a lead over its predecessor at the same stage of its lifecycle. Whether that translates into sustained sales will depend heavily on the games Nintendo brings to the screen next.

For now, Nintendo is holding the price line. Its next big task is making sure players have enough reasons to pick up the console.