Nintendo reports profit rise as Switch 2 sales slump nearly 40% after price hike

Nintendo Co. disclosed a rise in quarterly profit while revealing that sales of its latest console, the Switch 2, have dropped by almost 40 percent following a recent increase in the device's retail price.

The company said the higher earnings were driven by strong performance in its software portfolio and continued demand for earlier Switch models, but the newly adjusted pricing appears to have curbed consumer uptake of the upgraded hardware.

Analysts note that the price change comes at a time when the handheld market faces stiff competition from rival platforms and a broader shift toward mobile gaming. Early adopters who were waiting for the next‑generation console may have postponed purchases, opting instead for the more affordable, still‑available original Switch or for games on other devices.

Nintendo has not detailed the exact rationale behind the price revision, but industry observers point to rising component costs, supply‑chain constraints and the need to fund ongoing research and development as possible factors. The company has historically positioned its hardware as a premium entertainment experience, and the adjustment may reflect a strategic choice to prioritize profit margins over unit volume.

Looking ahead, Nintendo is expected to monitor the sales trajectory closely and may consider promotional incentives or bundle offers to revive momentum for the Switch 2. Market watchers will also be watching how the pricing strategy influences the broader console landscape, especially as competitors adjust their own pricing and feature sets in response to shifting consumer preferences.