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Nintendo Explains Switch 2 Price Hike as Costs Stay Elevated

It is leaning on new games to keep adoption strong after cutting its year-two sales goal to 16.5 million.

Overview

  • Nintendo, which addressed the change on Thursday in an earnings-call Q&A, said higher memory, component, currency, and oil costs will last for a while.
  • President Shuntaro Furukawa said holding prices steady would have hurt hardware profits and acknowledged the increase raises the barrier to entry.
  • Prices will vary by market, with the U.S. model moving from $449.99 to $499.99 on September 1 and Europe rising from €470 to €500.
  • The company said its playbook is unchanged as it works to grow the install base and use major releases like Pokémon Pokopia to drive upgrades.
  • Switch 2 has sold 19.86 million since launch, and Nintendo now forecasts 16.5 million shipments for the current fiscal year.