Nintendo Switch 2 sales fall 41% after price rises

Summarised from 4 outlets · Updated 5 Nov, 13:10 · Archive

Nintendo Switch 2 sales fell 41% in the second quarter after the company raised prices due to higher memory costs.

Nintendo Switch 2 sales fell sharply in the three months ended 30 September, with 2.67 million units sold compared with the same quarter last year. This represented a 41% decline from the previous year and was also lower than the 3.82 million units sold in the preceding quarter.

The sales drop followed price increases announced in early May, when Nintendo raised the Switch 2 price by $50 to $500 in the US, citing higher memory costs and US tariffs. The company also raised prices in Canada and Japan. Memory, a core component of Nintendo's consoles, continues to face supply shortages and high demand, driving unprecedented price increases for the chips.

Over the first six months of the fiscal year starting in April, Nintendo sold 6.49 million Switch 2 units, representing a 37.4% decrease compared with 10.36 million in the same period last year. Nintendo maintained that 'many consumers continued to adopt the system, spurred on by factors like the release of new titles' despite the decline. Software sales rose 18.88% year-on-year, with recent titles including Splatoon Raiders and Fire Emblem: Fortune's Weave performing well.

The company held to its forecast of 16.5 million Switch 2 units for the current fiscal year, which is almost 17% lower than the 19.86 million units sold in the previous year. Serkan Toto, CEO of Kantan Games, told CNBC that the Ocarina of Time remake, released on Thursday, was Nintendo's only major blockbuster this fiscal year. 'It's not enough to make investors happy, especially after the device is now as expensive as it is,' he said.

Despite lower console sales, Nintendo's net profit rose 11% from a year earlier, supported by strong software sales and the success of the latest Super Mario film. The company maintained its previous forecast of ¥310 billion net profit for the full year.

How it is being reported

• Switch 2 sales down by 37% this year but it’s outpacing the originalDespite a drop in Switch 2 sales, Nintendo is otherwise pleased with its financial results for the months of July to September and is confident it will still meet its annual targets.Metro · 5 Nov, 13:03
• Switch 2 sales fell by almost 40 percent after Nintendo increased pricesNintendo reports higher profit but substantially lower Switch 2 sales after it increased console prices.Engadget · 5 Nov, 10:44
• Nintendo’s net profit drops in Q2 as Switch 2 unit sales slowThe gaming giant is maintaining its net profit forecast of ¥310 billion for the full year despite the quarterly drop.The Japan Times · 5 Nov, 09:50
• Nintendo Switch 2 sales plunge 41% as price hikes and memory crunch biteSales of Nintendo's flagship Switch 2 plunged in its fiscal second quarter after the Japanese gaming giant rolled out price hikes amid soaring memory costs.CNBC · 5 Nov, 06:56

In this story: Nintendo · The Legend of Zelda: Ocarina of Time · Japan · United States · Canada

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