Japanese video-game maker Nintendo raises Switch 2 price, forecasts lower profits

May 16, 2026 - 22:46

TOKYO (AP) - Nintendo's net profit jumped 52% in the last fiscal year, driven by strong sales of its Switch 2 consoles and related software, the company said Friday. The Japanese gaming giant, known for franchises like Super Mario and Pokemon, also announced a price increase for its new hardware, citing difficult business conditions.

Net profit reached 424 billion yen, or about $2.7 billion. The results were fueled by the launch of the Switch 2, which has seen robust demand since its release. However, the company's outlook for the current fiscal year is more cautious. Nintendo forecast a decline in profits, partly due to the costs associated with ramping up production and marketing for the new system.

The company confirmed it is raising the price of the Switch 2 in several markets. Nintendo did not provide a detailed breakdown of the price hike but pointed to rising component costs, supply chain pressures, and currency fluctuations as key factors. The move marks a departure from the company's earlier strategy of keeping hardware prices stable for extended periods.

Analysts noted that while the Switch 2 launch has been successful, Nintendo faces a tougher environment ahead. The gaming industry is grappling with slower growth after a pandemic-era boom, and consumers are becoming more price-sensitive. Nintendo's stock slipped slightly in Tokyo trading following the announcement, as investors weighed the strong past performance against the more cautious forward guidance.