Nintendo may raise Switch 2 prices a second time, company plotting Fiscal Year 2028 with assumption that costs will rise

Nintendo's latest Q&A with investors shows the company is operating under the assumption that the current component crisis does not abate.

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The ongoing chip squeeze has triggered price hikes across nearly all consumer electronics, including consoles from Sony, Nintendo and Microsoft. Gamers have had to adapt to multiple increases on both PlayStation (two price hikes) and Xbox (three hikes). Nintendo plans to raise the price of its Switch 2 console on September 1, pushing the system from its original tariff-insulated $459 price to a more profit-friendly $499.

In the latest annual shareholders meeting, Nintendo management was specifically asked how skyrocketing chip prices will affect the group's future plans. Company president Shuntaro Furukawa responded by saying that Nintendo is currently outlining its plans and predictions for Fiscal Year 2028 (April 2027 - March 2028) based on the belief that memory and storage could continue increasing in price. This falls in line with Microsoft's own expectations, as Xbox CEO Asha Sharma says chip prices will continue to jump through the end of 2027: "As we plan for the 2027 holiday season, we expect another significant increase, taking us over 5x the prices we paid only two years earlier," Sharma said at the time.

Below is a copy of the Q&A exchange on memory prices from the shareholders meeting:

Frequently Asked Questions

TweakBot answers common questions about this news using TweakTown's own coverage from this page and related content from our archive. Tap a question to reveal the answer, or type your own below.

Question #1

How likely is Nintendo to raise Switch 2 price again after the September 1 increase, based on their Fiscal Year 2028 planning?

Nintendo is reasonably likely to raise the Switch 2 price again because management is planning Fiscal Year 2028 on the assumption that memory and storage prices will continue to rise. The company already slated a September 1 increase and says it will prepare business plans assuming continued component-cost increases while remaining flexible in response to market conditions.

Answered

Question #2

Which specific components (e.g., DRAM, NAND) did Nintendo cite as drivers of potential future price increases for Switch 2?

Nintendo specifically cited memory and storage as the components that could continue increasing in price and drive future cost increases for Switch 2. Related article "Report: Nintendo paying 41% more for RAM chips used in Switch 2" notes RAM (DRAM) as a memory component Nintendo is paying more for.

Answered

Question #3

Could Nintendo adjust Switch 2 production volumes if memory prices keep rising, and has the company mentioned any production plan changes?

Yes. Nintendo said it is preparing its plans assuming memory and storage prices could keep rising and will "continue responding flexibly to the market environment," which implies it could adjust production or other measures if needed. The company also stated it expects to be able to meet its production plan for the current fiscal year but acknowledged ongoing uncertainty and that it will closely monitor the situation; no specific production plan changes were announced.

Answered

Question #4

How might continued component cost rises affect Nintendo’s bundled offers or SKU lineup for Switch 2 (e.g., storage variants or bundles)?

The article says Nintendo is preparing fiscal plans assuming memory and storage prices keep rising and has already raised Switch 2 pricing once. That suggests continued component cost rises could lead Nintendo to further raise hardware prices and to respond flexibly to the market, which could include adjusting or limiting bundled offers and SKU choices to protect profitability. Related article "Nintendo ending production of Mario Kart World Switch 2 bundles" notes Nintendo may stop producing certain bundles, implying bundles or specific SKUs could be reduced or discontinued as costs rise.

Answered

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Q - What impact will rising memory prices have on Nintendo Switch 2 production and profitability, and how will Nintendo respond going forward?

A - (Nintendo President Shuntaro Furukawa):

For memory-related components, we are continuing discussions with our business partners regarding supply from a long-term perspective. At this time, we expect to be able to meet our production plan for the current fiscal year, but there is still uncertainty in the market environment, so we will continue to closely monitor the situation.

Procurement costs for memory-related components did not have a significant impact on our results for the previous fiscal year ended March 2026.

However, starting from the current fiscal year, we expect to be affected by rising component prices, including for memory.

We are preparing our business plan for the next fiscal year on the assumption that a similar trend will continue.

As a response to changes in the market environment, including these increases in component prices, we recently announced price revisions for Nintendo products, including Nintendo Switch 2 hardware.

However, precisely because we are in this kind of environment, we believe it is important to continue creating compelling reasons for consumers to purchase the hardware because they truly want to play particular software titles.

We will continue responding flexibly to the market environment while aiming to maximize our integrated hardware-software entertainment business.