Nintendo Says Switch 2 Sales Fell After Price Hikes

Sales slide and pricing moves

Nintendo sold 2.67 million Switch 2 consoles in its fiscal second quarter, down 41% year over year, and trailing the prior quarter's 3.82 million units. The company lifted Switch 2 prices in the U.S., Canada and Japan during the period, after hiking the device's cost in Japan earlier this year.

Costs and supply set the backdrop

Memory, a core component in Nintendo's consoles, is still in short supply with heavy demand, pushing chip prices to a level the company describes as without precedent. The quarter's pricing changes landed amid that squeeze.

Results and outlook

Revenue reached 448.2 billion Japanese yen, about $2.8 billion, and net profit was 73.5 billion yen, both missing LSEG averages of 481.37 billion yen and 82.16 billion yen. The Kyoto headquartered firm kept its Switch 2 sales forecast unchanged at 16.5 million units for the fiscal year ending March 2027.

Games on deck and investor watch

Nintendo had some strong titles this year, including "Tomodachi Life: Living the Dream" and the surprise viral hit "Pokémon Pokopia," but no major marquee releases beyond those. Investors are eyeing "The Legend of Zelda: Ocarina of Time," a Thursday launch that revisits one of Nintendo's most iconic games, to gauge whether it can boost Switch 2 sales over the next few weeks.

"Nintendo's only real blockbuster this fiscal year is the Ocarina Of Time remake. It's not enough to make investors happy, especially after the device is now as expensive as it is," Serkan Toto, CEO of Kantan Games, told CNBC.

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"It's getting harder and harder to sell video game hardware these days, and only hits help. Nintendo must step on the gas and deliver more big games next fiscal year to make sure the Switch 2 momentum continues." New Pokémon games are slated for 2027.

Why it matters for your portfolio

In plain English: unit sales fell in the quarter when Nintendo raised prices, and the company said memory shortages were pushing chip costs to levels not seen before, yet management held its 16.5 million unit goal. Watch whether the Zelda remake and the 2027 Pokémon pipeline can support hardware momentum while costs stay elevated.

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