Europe's new Switch 2 model could drive up production costs even higher

Nintendo has officially confirmed it will release a new Switch 2 console with a removable battery for European markets, and this shift could adjust production and manufacturing costs on a long-term basis.

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Nintendo plans to launch a new revised Switch 2 with a removable battery that complies with Europe's updated electronic device laws. The company says that these updated consoles will be designated specifically for the region and will have model numbers different than the Switch 2s that are currently sold worldwide.

"The Regulation requires that from February 18th, 2027, batteries integrated into certain appliances and sold in the EU must be easily replaceable by end-users at any time during the lifetime of the product. Nintendo is implementing measures to comply with these requirements by preparing versions of products to meet the Regulation," Nintendo writes in a product sheet update.

"For current products with model numbers starting with "BEE", future compliant versions will have unique model numbers and the additional code "OSM" visible on the packaging, designating them as separate products for regulatory purposes."

It's possible that Nintendo's new EU-compliant model could drive up manufacturing costs for that region, leading to a potential price hike sooner than might otherwise have happened.

One analyst, Omdia's James McWhirter, says that his firm expects Nintendo to raise prices again next year--the same year the company plans to have its new EU model out by. "We expect further increases to the price of Switch 2 in 2027," McWhirter tells Kotaku.

Any adjustments and changes to Switch 2's models affects the already-slim profit margins. Nintendo already announced it would raise the price of the Switch 2 from $499 to $549 starting September 1, and analysts actually believe that the Switch 2's price tag could have been cheaper at launch if not for the tariffs.

The combination of the tariffs at the beginning of the Switch 2's lifecycle with the ongoing chip shortages have been a kind of perfect storm to rattle Nintendo's hardware profit margins. It doesn't help that the Switch 2 was already less profitable than its forebear from the get-go, and while Switch 2 sales are accelerating, Nintendo is still making less profit on a per-unit sales basis than it would like to.

That's what led to the Switch 2's price hike from $499 to $549 (€469.99 to €499.99 in Europe) and with this new model on the way, we could see this system jump even higher--at least in the EU.