Nintendo has warned that further Nintendo Switch 2 price increases could become necessary if rising manufacturing costs begin to affect the company’s long-term profitability. During its November 6 financial results Q&A, president Shuntaro Furukawa said Nintendo would continue trying to absorb additional expenses but acknowledged that maintaining current retail prices may not always be possible.
Furukawa explained that manufacturing costs are currently increasing due to several external factors. Nintendo’s preferred approach is to offset these expenses through production improvements and other internal measures rather than immediately passing them on to consumers.
However, the company may reconsider its pricing strategy if those efforts are no longer enough to maintain profitability.
“Considering the overall profitability of the business, if the impact over the mid-to-long term is such that we cannot absorb the costs through our own efforts, and we determine that it would be difficult to maintain a healthy profit structure, we will need to consider price revisions.”
Nintendo has already adjusted Switch 2 hardware prices in 2026, with the first changes introduced in Japan in May, followed by further adjustments in other regions in September.
Rising memory prices are also affecting the cost of producing physical games. Furukawa acknowledged that the impact on software is smaller than on hardware, although the company continues to face challenges from increasing component expenses.
Nintendo does not use a fixed pricing structure across its software lineup. Instead, the company evaluates each game individually, setting prices based on its content and the value it believes the title offers consumers.
Nintendo senior executive Ko Shiota also discussed the company’s approach to hardware development. He explained that Nintendo does not necessarily prioritize the latest technology when designing its consoles, instead focusing on the hardware features needed to deliver its intended gaming experiences.
This approach allows Nintendo to invest in specific capabilities while potentially limiting performance specifications in areas that are less important to its overall design goals.
The financial effects of higher component prices are expected to become more apparent during the second half of Nintendo’s current fiscal year. The company said materials purchased at increased prices will make up a larger share of its inventory beginning in the third quarter.
Nintendo has not announced any additional Switch 2 hardware price changes beyond those already introduced this year.
