The Nintendo Switch 2 Will Soon Cost $500 USD in the US

Summary

• Nintendo has announced a $50 USD price increase for the Switch 2 in the US, bringing the console to $500 USD, citing higher memory costs and US tariffs as primary drivers
• The company shipped 19.86 million Switch 2 units in its last fiscal year across just three quarters, generating revenue of ¥2.3 trillion JPY ($14.7 billion USD), a 98.6 percent increase over the previous year
• Despite that record performance, Nintendo is forecasting sales of 16.5 million Switch 2 units for the next full fiscal year, well below analyst expectations of 20 million-plus, with roughly ¥100 billion JPY in additional costs attributed to rising component prices and tariff measures

Nintendo has confirmed a $50 USD price increase for the Switch 2 in the US as part of its fiscal year 2026 earnings report, raising the console’s retail price to $500 USD starting September 1. The company attributed the increase to rising memory costs and US tariffs, with its full-year forecast projecting an additional burden of approximately ¥100 billion JPY tied to those pressures.

The timing of the announcement is notable. Nintendo is raising prices off the back of one of the most successful console launches in the company’s history. The Switch 2 shipped 19.86 million units across just three quarters of its first fiscal year, a figure that significantly exceeded Nintendo’s own internal projections. Full-year revenue reached ¥2.3 trillion JPY ($14.7 billion USD), up 98.6 percent over the ¥1.16 trillion JPY (approx. $7.4 USD billion) recorded the year prior. By almost every commercial measure, the Switch 2’s launch year was a runaway success.

Software performed alongside hardware; Mario Kart World moved 14.7 million units, Pokemon Legends: Z-A reached 8.5 million, and Donkey Kong Bananza sold 4.5 million. Combined Switch and Switch 2 software sales hit 185.62 million units, up from 155.41 million Switch-only units in fiscal year 2025. The Super Mario Galaxy movie added another dimension to Nintendo’s cultural footprint, crossing $800 million USD at the global box office within its first four weeks of release.

Against that backdrop, the $50 USD price increase and the conservative sales forecast for the coming year read as a deliberate recalibration rather than a sign of trouble. Nintendo is forecasting 16.5 million Switch 2 units for the next full fiscal year, a figure that falls well short of analyst expectations but one the company still characterizes as representing a solid level of adoption for the console’s second year. The gap between that forecast and what analysts were projecting suggests Nintendo is managing expectations more carefully this cycle, having significantly underestimated its own sales performance in the year just concluded.

The $50 increase also lands differently for Nintendo than a comparable move would for its competitors. Sony raised the PS5‘s price by $150 USD over the past year, a significantly larger adjustment, but Nintendo’s consumer base skews younger and more price-sensitive than PlayStation’s. A $500 USD price point is a meaningful shift for a company whose hardware has historically competed on accessibility as much as performance. Whether that sensitivity translates into measurable sales resistance will be one of the defining questions of the Switch 2’s second year on the market.

The broader context is an industry-wide pressure on hardware margins. Rising memory costs and tariff measures are not problems unique to Nintendo, and the ¥100 billion JPY in additional costs the company has flagged reflects a structural challenge that is unlikely to resolve quickly. Nintendo’s operating profit is still forecast to rise slightly next year, driven by software sales, suggesting the company believes its software pipeline can compensate for the hardware headwinds it is navigating.