Nintendo Switch 2 Sales Drop 41 Percent After Price Hikes

Nintendo reported a 41 percent decline in Switch 2 sales for the fiscal second quarter ending September 30, moving 2.67 million units. The company missed revenue and net profit estimates, though it maintained its full-year sales forecast of 16.5 million units for the fiscal year ending March 2027.

The sales slump follows price increases in Japan, the United States, and Canada. Nintendo implemented these hikes to offset soaring memory chip costs driven by high demand and supply shortages.

To stimulate growth, the company released a remake of The Legend of Zelda: Ocarina of Time on Thursday. Investors are now looking toward new Pokémon titles scheduled for 2027. Serkan Toto, CEO of Kantan Games, noted that the current software lineup is insufficient to satisfy investors given the higher hardware cost, stating that only hits help sell hardware in the current market.