According to a report from Bloomberg, Nintendo is reportedly facing pressure to raise the price of its Nintendo Switch 2 console. This comes amid rising production costs and a continuous decline in its stock price. While the Switch 2 exclusive title, "Pokémon Pokopia," briefly boosted shares in March, Nintendo's stock has generally trended downwards, intensifying scrutiny on its pricing strategy ahead of the company's upcoming financial report.
The Nintendo Switch 2 launched in June 2025, priced at $449.99 in the United States. In Japan, a region-locked version retails for 50,000 yen, approximately $318 USD. The report indicates that both pricing points currently result in the hardware being sold at a loss, with the Japanese market experiencing particularly significant deficits.
However, the exact amount of loss per Switch 2 unit remains unclear. One analyst told Bloomberg that even a price increase of $50 to $100 would only "alleviate the burden" on the hardware, not necessarily turn it profitable.
Historically, game console manufacturers often sold hardware at a loss to expand their install base, then recouped costs through game software and accessories. Nintendo, however, abandoned this strategy with the original Switch after the commercial struggles of the Wii U. The Switch 2 now appears to be reverting to a more attractive price point, aiming to replicate the original Switch's success and encourage players to upgrade to the new console.
The report notes that Switch 2 sales performance has been robust, particularly strong in the Japanese market. However, overseas sales during last year's Christmas season were slightly lower than anticipated. Analysts suggest that Nintendo's reluctance to increase the Switch 2's price may be impacting the company's market valuation.
In fact, Nintendo has already increased prices for Switch 2 accessories and adopted higher pricing for some physical Switch 2 games. The company even raised the price of the original Switch. Similarly, Sony and Microsoft have also adjusted the prices of their current-generation consoles over the past year due to factors like component shortages and US tariffs.
Nevertheless, Nintendo must strike a delicate balance between shareholder expectations and consumer acceptance. While a price hike for the Switch 2 could potentially improve hardware profitability and market confidence, it might also hinder the console's adoption rate during its crucial early lifecycle. As of December 31, 2025, the Switch 2 user base had reached 17 million. Compared to the original Switch's impressive 155 million units sold to date, there remains substantial room for growth.
Note: Financial figures and earnings forecasts should be confirmed through the company’s official announcements.
via： Bloomberg