Nintendo president Shuntaro Furukawa has walked through the full-year earnings call explaining exactly why the Switch 2 price is climbing from $450 to $500 in the US and €470 to €500 in Europe starting September 1. The surge in memory and component costs, paired with foreign exchange shifts and oil price swings, is not a short-term blip but a medium-to-long-term reality that would hammer hardware margins if left unaddressed. Furukawa notes the decision was difficult but necessary to keep the overall earnings structure healthy for the dedicated video game platform business.

The Switch 2 had already moved nearly 20 million units in its first year through March 2026, prompting Nintendo to dial back year-two forecasts to 16.5 million. Furukawa acknowledges the hike raises the purchase barrier for some buyers but insists the focus remains on delivering software experiences that justify the cost. He declines to speculate on exact sales impact yet points to upcoming titles like a Star Fox 64 remake and Splatoon Raiders as part of the effort to grow the installed base.

This marks the last major console to adjust pricing upward in the current generation, following earlier increases on PlayStation 5 and Xbox Series models. Component pressures driven by AI demand and broader market volatility are expected to linger into next year, with Nintendo preparing flexible responses beyond that. Furukawa offers an apology for the inconvenience while committing to software that makes the hardware feel worth it.

The quarterly report itself lands with the usual corporate flatness: revenue details and sales projections presented in a monotone that somehow makes even console price drama feel like another spreadsheet line item.