Nintendo Switch 2 sales drop 41% after memory costs force price hikes

Nintendo reported a sharp drop in sales for its flagship Switch 2 console during its fiscal second quarter. The decline came after the company raised retail prices across several major markets to cope with rising component costs.

Hardware sales slow down

Nintendo sold 2.67 million Switch 2 units in the three months ending September 30. That is a 41 percent decrease compared to the same period in the previous year. It also represents a drop from the 3.82 million units sold in the prior quarter.

During the period, Nintendo raised the price of the Switch 2 in the United States, Canada, and Japan. The company had already increased the price in Japan earlier in the year. A major factor behind these higher costs is computer memory, a key hardware component. The market faces strong demand and limited supply, creating steep cost increases for these chips.

Software outlook and full-year goals

Despite the slower quarter, Nintendo kept its full-year hardware target at 16.5 million units. Its current fiscal year ends in March 2027.

The company has seen solid performances from games like Tomodachi Life: Living the Dream and Pokémon Pokopia, but it has had few major blockbusters this fiscal year. Nintendo recently released a remake of The Legend of Zelda: Ocarina of Time, which investors hope will draw more buyers to the platform.

• Nintendo sold 2.67 million Switch 2 consoles in the quarter.
• Price hikes affected consumers in the U.S., Canada, and Japan.
• Upcoming Pokémon releases are scheduled for 2027.