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Nintendo is reportedly facing pressure to raise the price of Switch 2 consoles, as costs rise and its share price continues to fall.
A new report by Bloomberg has highlighted the continuing decline of Nintendo stock, despite a positive bump in March due to the launch of Switch 2 exclusive Pokémon Pokopia. Now, ahead of the company’s next financial earnings release this coming Friday, Nintendo faces scrutiny from shareholders over whether it will finally budge on the Switch 2 launch price, after raising the price of pretty much everything else.
Nintendo Switch 2 launched last June priced at $449.99. In Japan, a region-locked version of the console is sold at 50,000 yen (equivalent to $318). Both of these prices reportedly see the hardware sold at a loss (particularly so in Japan).
Exactly how much of a loss Switch 2 is sold at isn’t clear, though one analyst told Bloomberg that even a $50-$100 price increase would mean the console was made “less of a burden rather than truly profitable.”
While hardware makers have frequently sold consoles as loss leaders in the past, opting to instead make their money back on software and accessories, Nintendo had ditched this strategy for the original Switch following the bruising losses of the Wii U era. But it then apparently changed course to ensure the hugely-successful Switch was followed by another hit console — at a price point that would convince customers to upgrade.
The question of whether Nintendo will increase Switch 2’s cost comes now amid a continued decline in the company’s share price over the past year, from record highs seen ahead of the Switch 2’s arrival. This is despite the console selling well — especially in Japan — albeit with international sales over Christmas that were somewhat slower than hoped. Still, analysts believe it is Nintendo’s continued refusal to increase the Switch 2’s cost that is impacting the company’s value.
Nintendo itself has hinted it may need to increase the Switch 2’s price at some point, after previously upping the cost of Switch 2 accessories, introducing alternative (higher) pricing for physical Switch 2 games, and even giving a price hike to the aging Nintendo Switch 1. And, of course, Nintendo would not be alone in upping the cost of its current console hardware — something both Sony and Microsoft have done over the past year in response to component shortages and US tariffs, with yet more uncertainty now due to the conflict in the Middle East.
But as Bloomberg’s article concludes, Nintendo must now strike a delicate balance. Any Switch 2 price rise to appease shareholders simultaneously risks upsetting consumers, and slowing Switch 2’s rollout at what is still an early phase in its life cycle. The console’s userbase is sizable for its first year (17 million as of December 31), but still a fraction of the long-lived Switch 1 (155 million to date). How long can Nintendo hold off a price rise? Only time will tell.
Tom Phillips is IGN’s News Editor. You can reach Tom at [email protected] or find him on Bluesky @tomphillipseg.bsky.social
