Nintendo Switch 2 Sales Plunge 41% Amid Price Hikes and Memory Shortages

Switch 2 Sales Plunge 41 Percent

Nintendo’s flagship Switch 2 suffered a 41 percent sales drop during its fiscal second quarter as the company implemented price hikes to counter severe memory component shortages, CNBC reported. The Japanese gaming giant sold 2.67 million units in the three months ending September 30, down from both the same period last year and the 3.82 million units sold in the prior quarter. Memory costs continue to surge due to intense industry demand and supply constraints, pressuring the console’s cost structure.

The Tech TL;DR:

• Nintendo sold 2.67 million Switch 2 units in the quarter ended September 30, a 41% year-over-year decline.
• Price increases rolled out in the U.S., Canada, and Japan to offset surging memory chip costs.
• Nintendo maintained its full-year fiscal forecast of 16.5 million units ending in March 2027, signaling confidence in long-term demand.

Component Costs Drive Price Increases

Memory remains a core component for the console, and ongoing supply shortages have driven an unprecedented price surge for the necessary chips, according to CNBC. Nintendo implemented price increases for the Switch 2 in the United States, Canada, and Japan, building on earlier price adjustments in the Japanese market earlier in the year. These price increases and supply constraints reflected weaker hardware demand. Sequentially, sales weakened from the prior quarter, highlighting ongoing difficulties in translating consumer interest into actual hardware purchases.

Financial Impact on Revenue and Profits

For the fiscal second quarter, Nintendo reported revenue of 448.2 billion Japanese yen, or roughly $2.8 billion, falling short of LSEG average estimates of 481.37 billion yen. Net profit reached 73.5 billion yen, missing the anticipated 82.16 billion yen. Despite the revenue miss and the sharp drop in hardware unit sales, the company chose to stick to its previous sales forecast of 16.5 million units for the current fiscal year ending in March 2027.

Remake Release Sparks Investor Hopes for Hardware Sales

While the Kyoto-headquartered firm launched several strong titles this year, including Tomodachi Life: Living the Dream and the viral hit Pokémon Pokopia, analysts point to a lack of major marquee titles as a hurdle for hardware adoption. None of the recent software releases represented a major hardware catalyst. Investors are now watching whether the release of The Legend of Zelda: Ocarina of Time remake, which debuted on Thursday, can boost hardware sales in the coming weeks.

Nintendo’s only real blockbuster this fiscal year is the Ocarina Of Time remake. It’s not enough to make investors happy, especially after the device is now as expensive as it is. It’s getting harder and harder to sell video game hardware these days, and only hits help. Nintendo must step on the gas and deliver more big games next fiscal year to make sure the Switch 2 momentum continues.

That assessment came from Serkan Toto, CEO of Kantan Games, speaking to CNBC. Looking further ahead, Nintendo has scheduled new Pokémon games for release in 2027 to sustain hardware momentum.