An analytics firm forecasts that Nintendo will raise the price of its Switch 2 console in 2026 due to rising RAM costs and tariffs. Despite strong initial sales, the company faces challenges from a trade war and AI-driven shortages. Nintendo's leadership has indicated it is monitoring these factors closely.
Nintendo's Switch 2, launched in June 2025 at a $449 entry price, has achieved the fastest sales of any Nintendo console to date. It is outselling the original Switch by a wide margin in its first year and by almost 2:1 in Japan during its first 30 weeks on the market. However, video game consumer insights firm Niko Partners predicts a price increase in 2026, following in the footsteps of competitors Sony and Microsoft.
The forecast stems from escalating import taxes amid a U.S.-China trade war, along with surging memory costs fueled by AI demands. Niko Partners notes that Nintendo maintained its pricing despite these pressures at launch but may need to adjust due to ongoing market conditions. Amazon's CEO has warned that companies will pass on more tariff-related costs to consumers this year.
Nintendo President Shuntaro Furukawa addressed investors last November, stating the company could keep the Switch 2 at around $450 and maintain hardware profitability "unless there are significant changes in external factors." Earlier this year, he mentioned monitoring the RAM situation without committing to avoid a price rise.
The second half of the Switch 2's launch year has been uneven. Christmas hardware sales dropped 35 percent compared to 2017, the original Switch's release year. Bloomberg reports that game sales and attach rates are lower than the first Switch's debut. Nintendo's stock has fallen 23.45 percent in the last three months.
Niko Partners suggests Nintendo might shift to selling a $500 bundle exclusively rather than raising the standalone price. With AI-driven RAM shortages and a challenging holiday season, the company must balance sales momentum and rising costs. No new 3D Mario or Zelda titles have been announced to boost interest.
