Hold onto your gaming devices because the cost of the Nintendo Switch 2 is set to rise. Nintendo announced that starting September 1, the price of the Nintendo Switch 2 in Canada will go up to $679.99 Cdn from its current price of $629.99.
This price hike in Canada aligns with the increase in Japan, where the price of the Switch 2 will rise to 59,980 yen from 49,980 yen as of May 25. Nintendo attributed this decision to changes in market conditions and a consideration of the global business outlook.
According to Nintendo’s president, Shuntaro Furukawa, the price adjustment reflects higher component costs and various factors such as exchange rates. The company cited challenges related to surging memory chip prices and the impact of tariffs as reasons for the price increase.
The rise in memory chip prices has been driven by increased demand for AI data centers, leading to disruptions in the supply chain for smartphones, laptops, and automobiles. This surge in memory chip prices is expected to impact costs for Nintendo by approximately 100 billion yen ($874 million Cdn) in the current financial year.
Despite the price hikes, Nintendo anticipates that its profitability will remain relatively stable compared to the previous financial year. The company reported a significant increase in net profit for the fiscal year that ended in March, with annual sales also experiencing a substantial rise due to sustained demand for the Switch 2.
Looking ahead, Nintendo forecasts a decline in profit for the fiscal year through March 2027, factoring in the planned price adjustments. The company expects to sell fewer Switch 2 units in the upcoming fiscal year but projects continued growth in software sales. Nintendo’s stock price rose by 3.6 percent following the earnings announcement.
The Switch 2, a versatile gaming console that can be used both at home and on the go, has garnered positive reception, and Nintendo plans to introduce more software titles to enhance the gaming experience for users.