Switch 2 Price Hike Won't Be the Last, Nintendo Warns

"Unfortunately, the recent surge in memory and other component prices, and the changes in the market environment, including trends in the foreign exchange market and the price of oil, are all factors that we anticipate will continue over the medium to long term." That's Nintendo president Shuntaro Furukawa, speaking during an earnings Q&A following the company's full-year results, explaining why the Switch 2 is getting more expensive and why the pressure probably isn't going away.

The full quote, translated and published by Nintendo, paints a bleak picture for anyone hoping this was a one-time correction. Furukawa said the cost factors "could have an impact not only this year but next year as well," and that Nintendo would need to "respond flexibly to whatever situation arises" going forward. Read between the lines and that's a company leaving the door wide open for another increase.

Nintendo confirmed last week that Switch 2 will rise from $450 to $500 in the US (€470 to €500 in Europe) effective September 1st. UK pricing is set by retailers, so there's no official number there yet. The console launched in June 2025 and sold just under 20 million units in its first year, a strong debut that may have given Nintendo the breathing room to absorb costs early on. Year two projections have been lowered to 16.5 million units, which suggests the company already expects the higher price to slow momentum.

Every Console Got More Expensive

Switch 2 is actually the last current-gen hardware to take a hit. PlayStation 5 jumped to £570/€650/$650 at the end of March, and Xbox Series S/X has been bumped more than once during this generation. This is, as far as anyone can tell, the first console generation where every base model has gone up in price after launch rather than trending downward. The culprit is a mix of memory price spikes, driven partly by the enormous demand from generative AI computing, plus broader supply chain and currency pressures.

Furukawa acknowledged that the increase "raises the barrier for entry" for potential buyers, but framed the decision as necessary for long-term business health. "If the increase in costs were seen as something temporary that would subside relatively soon, then we could have pursued other options, such as working to improve productivity and expand the installed base while maintaining hardware prices," he said. Instead, Nintendo chose to pass a portion of those costs to consumers now.

I think the honesty here is unusual for Nintendo, and I appreciate it, even if the message itself is grim. Most platform holders raise prices with a vague press release and move on. Furukawa is essentially telling consumers: this isn't a blip, the economics of building consoles have shifted, and we can't promise it won't happen again. That kind of transparency deserves credit even when the news stings.

Nintendo's pitch to justify the higher price is software. Furukawa stressed that "the most important thing in our dedicated video game platform business is to offer engaging fun that is worth more than the price." On that front, the lineup includes a newly announced Star Fox 64 remake due in June, Splatoon Raiders this summer, and FromSoftware's The Duskbloods still planned for this year. A new mainline Pokémon title, Wind and Waves, isn't arriving until 2027. Whether that slate is enough to keep 16.5 million people reaching for their wallets at $500 is the real test. If component prices keep climbing and Nintendo has to bump the number again next year, even a strong library might not be enough to soften the blow.