Nintendo raised the Switch 2 to $499.99 in the US, to 59,980 yen in Japan and to €499.99 in Europe — then shipped 41% fewer units than a year earlier. The console sold 6.49 million units in the first half of the fiscal year, with lifetime hardware at 26.35 million. President Shuntaro Furukawa says memory and storage costs will hurt more next fiscal year, yet insists there is no price increase planned "at this time." One memory chip is now setting the price of the console, the sales curve and the company's profit.
Nintendo's Second Quarter: 2.67 Million Units
Nintendo bundles its first two fiscal quarters: 6.49 million Switch 2 consoles and 24.49 million Switch 2 games, with lifetime hardware at 26.35 million and software at 73.21 million as of September 30 (source: Nintendo financial results, November 2026). The single quarter is the uncomfortable part. At 2.67 million units, the Switch 2 sold 1.15 million fewer consoles than the 3.82 million it moved in the previous quarter, and 41% fewer than a year earlier (source: CNBC, November 5, 2026).
Three markets, three price increases
The US price moved from $449.99 to $499.99, Japan from 49,980 yen to 59,980 yen, and Europe from €469.99 to €499.99 (source: Kuai Technology via ifeng, November 6, 2026). The Japanese increase was the second one this year. Higher prices in three regions and a 41% drop in the same quarter is not a coincidence that needs a model to explain.
Hardware profit fell nearly 20 points
Profit tied to hardware dropped almost 20 percentage points year over year (source: Kuai Technology, November 6, 2026). Nintendo's long-standing structure — thin margins on hardware, real money on software — is the leg that just went weak. Consoles are not selling as well, and each one earns less.
How Memory Prices Reached Your Living Room
Tariffs are not the main driver. Memory is. AI data centers have absorbed DRAM and NAND capacity, and both Samsung and Micron have warned that chip shortages could last into 2027 or even 2028 (source: Kuai Technology, November 6, 2026). A game console is a memory-hungry product, and memory now sits in a heavier spot on the bill of materials than it did a generation ago.
Sony already sells the PS5 at $649
Sony has raised the PS5 starting price to $649 (source: Kuai Technology, November 6, 2026). Facing the same cost shock, two Japanese platform holders made the same call: pass it to players. The difference is timing. Sony moved first; Nintendo moved half a step later.
Why Profit Rose 49% Anyway
Net sales came in at 966 billion yen, down 12.1% year over year. Operating profit reached 216.5 billion yen, up 49.1%. Net profit was 220.9 billion yen, up 11.0% (source: Nintendo financial results, November 2026). Revenue fell while profit climbed, and the arithmetic is simple: consoles barely make money, software and IP do.
Software and a movie carried the quarter
On Switch 2, Star Fox sold 1.17 million copies, Splatoon Raiders 2.42 million and Fire Emblem: Fortune's Weave 1.34 million. On the original Switch, Tomodachi Life: Living the Dream reached 8.81 million and Rhythm Heaven Groove 2.89 million. Digital sales hit 249.6 billion yen, up 60.5%, and IP-related revenue reached 62.7 billion yen, up 87.9%, powered by The Super Mario Galaxy Movie (source: Nintendo financial results, November 2026). The console is the front door. The money is collected behind it.
How Long Can Furukawa Hold the Line?
Furukawa gave the press two sentences on November 5, one for players and one for investors. For players: "We are not considering a price increase at this time." For investors: Nintendo is planning fiscal 2028 on the assumption that costs will be higher (source: Kuai Technology, November 6, 2026). The second sentence is the honest one. Holding the price is today's message; rising costs are the premise for the next three years.
16.5 million units means 1.67 million a month
Nintendo kept its fiscal-year target of 16.5 million Switch 2 consoles and says supply is sufficient (source: Kuai Technology, November 6, 2026). It shipped 6.49 million in the first half, which leaves 10.01 million for the second half — roughly 1.67 million a month. October brought a Zelda 40th Anniversary Edition console, The Legend of Zelda: Ocarina of Time launched on November 5, and Metroid Ravenous arrives in January. Serkan Toto, CEO of Kantan Games, was blunt with CNBC: "Nintendo's only real blockbuster this fiscal year is the Ocarina Of Time remake. It's not enough to make investors happy, especially after the device is now as expensive as it is."
Buy Now or Wait a Year?
My read is simple. If you are buying for Ocarina of Time and the first-party slate behind it, waiting will not save you much — memory costs are still climbing, and the room for a price cut is locked shut by the bill of materials. If you are buying for third-party blockbusters, spring is the better checkpoint: see how Metroid Ravenous and the 2027 Pokémon titles land, and whether Sony or Microsoft blink first on pricing.
What will not come back is the pattern we spent a decade relying on, where console prices slide steadily downward and patience always wins. This generation, patience buys time, not a discount. We track console pricing and quarterly results at GameHub.
FAQ: Three Questions Players Keep Asking
How much does a Switch 2 cost now?
$499.99 in the US, 59,980 yen in Japan and €499.99 in Europe — all official prices after this year's increases (source: Kuai Technology, November 6, 2026). Regional pricing outside these markets follows local official channels.
When will memory prices come down?
Samsung and Micron have both warned shortages may run into 2027–2028 (source: Kuai Technology, November 6, 2026). Nintendo has already built higher costs into its fiscal 2028 planning assumptions.
Will Nintendo cut the price to rescue sales?
Unlikely. Furukawa ruled out an increase "at this time" but offered no cut, and Nintendo kept its 16.5 million unit target unchanged (source: Nintendo financial results, November 2026). Buying volume with a price cut would break the profit structure it just rebuilt.