- Nintendo (OTC:NTDOY) has issued a warning that it may increase the price of its highly anticipated new console, the Switch 2, due to weaker-than-expected initial sales projections
- In its annual financial highlights for the period of March 2024 to March 2025 released this week, the Kyoto-based company expects to ship 15 million units of the Switch 2, falling short of the 16.8 million units estimated by analysts
- President Shuntaro Furukawa highlighted the possibility of price changes during a call with analysts, noting that the company is considering a tariff impact of tens of billions of yen on this year’s profit
- Nintendo stock (OTC:NTDOY) opened at US$20.47
Nintendo (OTC:NTDOY) has issued a warning that it may increase the price of its highly anticipated new console, the Switch 2, due to weaker-than-expected initial sales projections.
In its annual financial highlights for the period of March 2024 to March 2025 released this week, the Kyoto-based company expects to ship 15 million units of the Switch 2 by the end of the 2025/26 financial year, falling short of the 16.8 million units estimated by analysts. Despite strong pre-orders for the C$629.99 / C$699.99 console, Nintendo’s forecasted annual operating profit of ¥320 billion (C$3 billion) is significantly below market expectations.
The uncertainty surrounding the Switch 2’s pricing is compounded by potential impacts from Trump administration tariffs. Nintendo, which manufactures most of its gaming devices in China, may adjust US prices based on market conditions. President Shuntaro Furukawa highlighted the possibility of price changes during a call with analysts, noting that the company is considering a tariff impact of tens of billions of yen on this year’s profit.
Nintendo aims to replicate the success of the original Switch, which sold around 15 million units in its first 10 months after its 2017 debut. Furukawa emphasized that the projected sales figures for the Switch 2 do not account for supply constraints. The company is focused on ensuring strong initial momentum for the new platform, factoring in various elements beyond production costs.
The transition to the Switch 2 marks a significant shift for Nintendo, moving away from the eight-year-old Switch and seeking to rejuvenate growth after years of modest earnings and declining demand for the original console. In the March quarter, Nintendo’s operating profit dropped 46 per cent to ¥35 billion, concluding a fiscal year with sales of 10.8 million Switch consoles and 155.4 million software copies. The surge in pre-orders for the Switch 2 has led Furukawa to caution that many consumers may not receive the new console on its release date in Japan, with orders quickly selling out at numerous US retailers.
Microsoft (NASDAQ:MSFT) recently raised the prices of its XBox Series consoles and games and people were already upset at the current retail price of the Nintendo Switch 2.
With headquarters in Kyoto, Japan Nintendo Co., Ltd. is a multinational video game company that develops, publishes and releases video games and video game consoles.
Nintendo stock (OTC:NTDOY) opened more than 3 per cent lower on the OTC market at US$20.47.
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