Japanese video-game maker Nintendo Co. has raised the price of its popular Switch console in several markets, including Japan, and warned of lower profits for the current fiscal year due to currency fluctuations and increased component costs.
Price hike details
The Kyoto-based company said Tuesday that the Switch will now cost 37,980 yen ($340) in Japan, up from 32,980 yen. The price increase also applies to key markets in Europe and Asia, though Nintendo kept U.S. prices unchanged for now. The move comes as the Japanese yen trades near 34-year lows against the U.S. dollar, inflating the cost of imported components and reducing the value of overseas earnings.
Financial outlook
Nintendo forecast net profit of 340 billion yen ($3.1 billion) for the fiscal year ending March 2027, down 30% from the previous year. Revenue is expected to decline 12% to 1.5 trillion yen. The company cited a strong yen impact and higher marketing expenses for the upcoming Switch 2 launch as key factors.
Switch 2 on the horizon Nintendo is preparing to launch the next-generation Switch 2 console later this year, which analysts expect to drive a new growth cycle. However, the company warned that initial production costs and promotional spending will weigh on near-term profitability.
Market reaction
Shares of Nintendo fell 2.3% in Tokyo trading following the announcement. The company's stock has declined 8% this year amid concerns over the aging Switch platform and intensifying competition from Sony Group Corp. and Microsoft Corp.
Industry context
The video-game industry is grappling with rising development costs and slowing demand after a pandemic-era boom. Nintendo's Switch, now in its ninth year, has sold over 145 million units worldwide, making it one of the best-selling consoles of all time. The price increase is Nintendo's first for the Switch since its launch in 2017.
Nintendo also reported a 22% drop in operating profit for the fiscal year ended March 2026, to 420 billion yen, slightly above its own forecast. The company maintained its dividend at 120 yen per share.
