In its latest earnings report, Nintendo announced a price hike for the Switch 2, raising the U.S. retail price by $50 to a new total of $500. The company cited increased memory costs and new U.S. tariff measures as the primary drivers behind the adjustment. While this increase is notably more modest than the $150 price jump seen by Sony’s PS5 over the past year, analysts suggest the hike could still impact Nintendo’s younger, more price-sensitive demographic.
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The Switch 2 has enjoyed an exceptionally strong debut, with 19.86 million units shipped in just three quarters of the last fiscal year. However, Nintendo’s outlook for the upcoming year is unexpectedly conservative:
- FY 2027 Forecast: Nintendo is projecting sales of 16.5 million units.
- Analyst Expectations: Many industry experts had anticipated a forecast exceeding 20 million units given the console’s initial momentum.
- The “Second Year” Stance: Despite the lower forecast, Nintendo maintains that 16.5 million units would still represent a “solid level of adoption” for the console’s second year on the market.
Software continues to be a major revenue driver. Total units sold across the original Switch and Switch 2 rose to 185.62 million this year. Key performance highlights include:
- Mario Kart World: 14.7 million units.
- Pokémon Legends: Z-A: 8.5 million units.
- Donkey Kong Bananza: 4.5 million units.
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Beyond gaming, Nintendo’s transmedia strategy is paying off. The Super Mario Galaxy movie has grossed over $800 million within its first four weeks of release, further bolstering the brand’s global reach.
Nintendo’s 2026 fiscal year revenue surged by a staggering 98.6% to 2.3 trillion yen ($14.7 billion). While the company expects total revenue to dip by roughly 11.4% next year as launch-window hardware sales stabilize, it forecasts a slight rise in operating profit driven by high-margin software sales. These gains will be partially offset by approximately 100 billion yen in additional expenses tied to rising component prices and international trade tariffs.
