The Nintendo Switch 2 Will Soon Cost $500 USD in the US

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Summary

  • Nintendo has announced a $50 USD price increase for the Switch 2 in the US, bringing the console to $500 USD, citing higher memory costs and US tariffs as primary drivers
  • The company shipped 19.86 million Switch 2 units in its last fiscal year across just three quarters, generating revenue of ¥2.3 trillion JPY ($14.7 billion USD), a 98.6 percent increase over the previous year
  • Despite that record performance, Nintendo is forecasting sales of 16.5 million Switch 2 units for the next full fiscal year, well below analyst expectations of 20 million-plus, with roughly ¥100 billion JPY in additional costs attributed to rising component prices and tariff measures

Nintendo announced the new Switch 2 will cost $500 in the US, a $50 price increase, starting September 1st. The company explained this is due to higher costs for memory chips and tariffs in the US, which they estimate will add about ¥100 billion JPY to their expenses this year.

It’s interesting that Nintendo is increasing prices now, following a remarkably successful launch of the Switch 2. In just the first three quarters of its release year, the console sold 19.86 million units – far more than Nintendo had predicted. This drove full-year revenue to ¥2.3 trillion (about $14.7 billion USD), a 98.6% increase from the previous year’s ¥1.16 trillion (approximately $7.4 billion USD). By nearly every standard, the Switch 2 had an incredibly successful first year.

As a huge Nintendo fan, I’ve been following the numbers, and they’re incredible! Games are clearly doing amazing – Mario Kart World sold over 14 million copies, Pokemon Legends: Z-A hit 8.5 million, and even Donkey Kong Bananza moved 4.5 million! Overall, Switch and the upcoming Switch 2 have sold a combined 185.62 million games, which is a big jump from the 155.41 million Switch-only sales last year. And let’s not forget the Super Mario Galaxy movie – it’s already made over $800 million worldwide in just its first month! It’s awesome to see Nintendo doing so well on both the gaming and movie fronts.

Considering the current market conditions, the recent $50 price increase and Nintendo’s cautious sales predictions don’t seem to indicate any problems. Nintendo expects to sell 16.5 million Switch 2 consoles next year, which is less than what analysts predicted, but they still see it as a healthy number for the console’s second year on the market. This difference between their forecast and analyst predictions suggests Nintendo is being more careful about setting expectations this time around, especially since they underestimated sales quite a bit last year.

The $50 price increase feels different for Nintendo compared to its competitors. While Sony increased the price of the PS5 by $150 in the last year, Nintendo’s customers are generally younger and more focused on price. Reaching a $500 price point is a big change for Nintendo, as their consoles have always been known for being affordable as well as powerful. It remains to be seen if this price sensitivity will affect sales, and that will be a key factor in how well the Switch 2 performs in its second year.

The entire hardware industry is facing lower profits, and Nintendo is no exception. Increasing memory prices and tariffs are affecting everyone, and Nintendo estimates these issues will cost them around ¥100 billion. This isn’t a short-term problem. However, Nintendo still expects a small increase in overall profit next year, thanks to strong software sales, indicating they believe their games will offset the challenges with hardware.

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2026-05-12 11:26