Nintendo Switch 2 sales plunge 41% as price hikes and memory costs bite
Nintendo’s Switch 2 sold 2.67 million units in Q3, down 41% YoY amid price hikes and soaring memory‑chip costs, while software sales helped lift profit.
Based on reporting by Mucahithan Avcioglu (Anadolu Agency), Fedir Kryshtovskyi (UA.NEWS) and Fedir Krysztowski (UA.NEWS).
What happened: Nintendo Switch 2 sales tumble 41% YoY
Nintendo reported that it sold 2.67 million Switch 2 consoles in the July‑September quarter, a 41.2% drop compared with the same period a year earlier, according to the company’s financial results and CNBC coverage. The decline also outpaced the previous quarter, when 3.82 million units were shipped, representing a 30.1% quarterly slide.
Six‑month hardware shipments fell 37.4% to 6.49 million units, while sales of the original Switch slipped 32.7% to 1.27 million units.
Why the decline occurred
The company attributed the slump to two intertwined factors:
Price hikes: Nintendo raised Switch 2 prices in the United States, Canada and Japan during the quarter, following an earlier increase in Japan earlier in the year.
Memory‑chip cost pressure: A sharp rise in memory‑chip prices – a key component in the console – forced Nintendo to absorb higher component costs, estimated at about $633 million for the fiscal year.
Despite weaker hardware sales, Nintendo’s profitability improved. Operating profit rose 49.1% to 216.5 billion yen ($1.37 billion) in the first half of the fiscal year, while net profit increased 11% to roughly $1.4 billion. Revenue, however, fell 12.1% to about $6.12 billion, reflecting the hardware slowdown.
Software sales partially offset the hardware dip, climbing 18.8% to 24.49 million units for Switch 2 titles and 6.8% to 65.73 million units for the original Switch. Steady software revenue helped keep operating margins healthy and allowed Nintendo to maintain its full‑year forecasts.
For shareholders, the key takeaway is that the company’s earnings remain resilient, but the sales trajectory of its flagship console is now more uncertain. The forecast of 16.5 million Switch 2 units for the fiscal year ending March 2027 assumes the company can navigate price sensitivity and component‑cost volatility.
What the numbers mean for consumers
Higher retail prices may deter price‑sensitive gamers, especially in markets where competing consoles are also seeing price adjustments. The memory‑chip shortage could also delay the release of future hardware revisions or limit supply, potentially leading to longer wait times for new units.
On the upside, Nintendo’s strong software performance suggests that existing Switch owners will continue to receive new titles, and the company plans to leverage the large installed base of the original Switch to drive software sales. Consumers can expect a steady flow of games, including upcoming Pokémon releases slated for 2027.
What to watch next
Investors and industry watchers should monitor several upcoming developments:
Any further price adjustments in the U.S., Canada or Japan, especially if memory‑chip costs remain elevated.
Sales impact of the newly released Ocarina of Time remake, which Nintendo highlighted as a potential boost for the Switch 2.
Quarterly updates on component‑cost forecasts, as Nintendo has earmarked $633 million in additional expenses for the year.
Broader semiconductor market trends, since a sustained memory shortage could affect other gaming hardware and consumer electronics.
Continued strength in software sales will be crucial for sustaining profitability, while hardware recovery will likely depend on how effectively Nintendo balances pricing with consumer demand.
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