● Covered by 2 sources · 2 reportsMedium impact2 negative
Nintendo Switch 2 Sales Decline 41% Amid Price Hikes and Memory Shortages
Key points
- Switch 2 sales fell 41% to 2.67 million units in Q2.
- Price increases implemented in US, Canada, and Japan.
- Memory chip shortages contribute to increased costs.
- Revenue and net profit missed LSEG average estimates.
- Nintendo aims to sell 16.5 million units by March 31, 2027.
- Kantan Games CEO Serkan Toto predicted the sales decrease.
- Nintendo's only blockbuster this fiscal year is the Ocarina of Time remake.
Sales Decline in Fiscal Q2
Nintendo announced a significant decrease in sales for its Switch 2 console during the fiscal second quarter, which ended September 30. The company sold 2.67 million units, marking a 41% reduction compared to the same period last year. This figure also represents a drop from the 3.82 million units sold in the preceding quarter.
Price Increases and Supply Chain Issues
The sales downturn occurred after Nintendo raised the price of the Switch 2 in the U.S., Canada, and Japan. These price adjustments were implemented earlier in the year in Japan and later expanded to other major markets. A primary factor driving these price hikes is the persistent supply shortage and high demand for memory chips, a critical component in console manufacturing, leading to increased costs.
Financial Performance Below Expectations
Nintendo's financial results for the quarter fell short of analyst predictions. Revenue reached 448.2 billion Japanese yen ($2.8 billion), lower than the expected 481.37 billion yen. Net profit was reported at 73.5 billion yen, also below the 82.16 billion yen anticipated by LSEG average estimates.
Game Releases and Future Outlook
Despite the release of popular titles like 'Tomodachi Life: Living the Dream' and 'Pokémon Pokopia' this year, the quarter lacked major marquee game releases. Industry observers suggest that the recent launch of 'The Legend of Zelda: Ocarina of Time' remake might help boost sales. Nintendo maintains its full-year sales forecast of 16.5 million Switch 2 units for the fiscal year ending March 2027, with new Pokémon games scheduled for release in 2027.
Updates
- Nintendo aims to sell 16.5 million units by March 31, 2027.
- Kantan Games CEO Serkan Toto predicted the sales decrease.
- Nintendo's only blockbuster this fiscal year is the Ocarina of Time remake.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
Nintendo Switch 2 sales decreased by 41% in the second fiscal quarter, selling 2.67 million units, following price increases in key markets. This decline puts pressure on Nintendo to release more successful titles to meet its annual sales forecast of 16.5 million units.
Nintendo reported a 41% drop in Switch 2 unit sales for its fiscal second quarter, selling 2.67 million units, down from 3.82 million in the previous quarter. This decline follows price increases in key markets and ongoing memory chip supply shortages, impacting revenue and net profit below analyst expectations.