Nintendo faces a decision this Friday that could define the Switch 2's trajectory: raise the console price to satisfy investors, or hold the line and risk further stock decline. A Bloomberg report reveals shareholders are pushing Nintendo to increase the Switch 2's cost as the company prepares its next financial earnings release. The console, which launched last June at $449.99 in the US and 50,000 yen (roughly $318) in Japan, is reportedly sold at a loss at both price points.
Nintendo's stock has dropped more than 50% from its August 2025 peak of 14,655 JPY, now sitting at 7,597 JPY. The decline persists despite strong product performance.
Pokémon Pokopia, a Switch 2 exclusive, sold 2.2 million units in its first four days after a March release. The Super Mario Galaxy Movie is the highest-grossing film of 2026 so far.
Hideki Yasuda, an analyst at Toyo Research Advice, told Bloomberg he believes Nintendo's stock will keep falling unless the company raises the Switch 2's price. The margin pressure stems from a global memory shortage driven by AI data center demand, which has spiked component costs. The situation worsened with the closing of the Strait of Hormuz, a critical shipping lane.
Nintendo already raised prices on Switch 2 accessories like the Pro Controller and amiibo following tariffs last year, and has hiked pricing on physical Switch 2 games and the aging Switch 1 itself.
Even a substantial price increase wouldn't fully solve the problem. One analyst told Bloomberg that a $50-$100 hike would make the console "less of a burden rather than truly profitable."
Sony faced similar pressure and buckled, raising PS5 prices across the board. The PS5 Pro now costs $899.99 in the US.
Microsoft has also increased Xbox pricing multiple times in North America over the past year. But Nintendo is in a different position than its competitors. The Switch 2 is still in its first year, with 17 million units sold as of December 31. The original Switch went on to sell 155 million units lifetime. A price hike at this stage risks slowing adoption and software sales, which is where Nintendo makes its real money.
Nintendo president Shuntaro Furukawa is expected to field questions about pricing at the Friday earnings briefing. The company has previously indicated a price increase is possible but has signaled a willingness to absorb early losses to help the console establish its userbase.
