Nintendo Switch 2 Sales Drop Amid Price Hikes and Memory Shortages
Nintendo reports 41% decline in Switch 2 sales for fiscal second quarter.
The Brief
- Nintendo sold 2.67 million Switch 2 units in Q2, down 41% from the previous year.
- Price increases in the U.S., Canada, and Japan followed earlier hikes in Japan.
- Memory shortages and rising chip costs impact console production and sales.
Nintendo reported a significant drop in Switch 2 sales during its fiscal second quarter, with 2.67 million units sold, a 41% decrease compared to the same period last year.
The company raised prices for the Switch 2 in the U.S., Canada, and Japan after increasing costs in Japan earlier this year, citing rising memory expenses.
Memory, a key component for Nintendo's consoles, continues to face supply shortages and high demand, leading to sharp increases in chip prices.
Despite the sales decline, Nintendo maintained its forecast of 16.5 million Switch 2 units sold in the current fiscal year, which concludes in March 2027.
The company's revenue for the quarter was 448.2 billion Japanese yen ($2.8 billion), below the 481.37 billion yen expected, while net profit was 73.5 billion yen, lower than the 82.16 billion yen projected.
Nintendo released several games this year, including 'Tomodachi Life: Living the Dream' and 'Pokémon Pokopia,' which gained unexpected popularity. However, no major flagship titles were launched.
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