Nintendo Switch 2 Launch: Lower Profit Margin Confirmed Ahead of Global Release

Nintendo has officially confirmed that the Nintendo Switch 2 will carry a lower profit margin than its predecessor, the original Nintendo Switch.

This announcement arrives as the Japanese gaming giant prepares for a significant hardware launch with the Switch 2’s global release, scheduled for June 5, 2025.

The anticipated console will retail at $449.99 in the United States, £395.99 in the United Kingdom, and €469.99 across Europe, marking a noticeable price increase over previous generation hardware. According to Nintendo’s latest financial forecast, the company aims to sell 15 million Nintendo Switch 2 consoles by the end of its current fiscal year, which concludes on March 31, 2026.

Despite this ambitious sales target, Nintendo has tempered expectations regarding profitability.

The company projects a 64.1 percent year-on-year increase in net sales as a result of the new console’s launch, yet net profit is forecasted to rise by only 7.6 percent in the same period. Nintendo president Shuntaro Furukawa addressed the profit outlook, attributing the marginal increase in profits primarily to the Switch 2’s slimmer profit margin compared to the original system.

In a statement shared by Nintendo and reported by Bloomberg Opinion columnist Gearoid Reidy, Furukawa explained that while the Nintendo Switch 2 is expected to contribute substantially to revenue, its cost of production and development has resulted in a lower percentage of profit on each unit sold. This financial strategy diverges from the higher-margin approach taken with the first Nintendo Switch, launched in 2017, which set a new benchmark for hybrid gaming hardware.

The original Switch enjoyed robust profit margins alongside record-breaking sales, but the technological advancements and increased manufacturing costs associated with the Switch 2 have necessitated a shift in Nintendo’s hardware profitability model. The Nintendo Switch 2 will be available at major retailers and via the Nintendo eShop beginning June 5, 2025.

With enhanced capabilities and a new price point, Nintendo seeks to maintain momentum in a highly competitive console market.

The company’s continued innovation and measured guidance highlight its commitment to sustainable growth, even as profit margins adjust to market and technological realities. As the gaming world eagerly anticipates further details and hands-on impressions of the Nintendo Switch 2, the transparency from Nintendo regarding its business outlook and financial expectations underscores the challenges and scale of modern hardware launches.

Stay tuned for ongoing coverage and in-depth analysis as the next generation of Nintendo hardware approaches its release.

Nintendo Switch 2 Nintendo Switch Nintendo Switch 2 Switch Shuntaro Furukawa Bloomberg Opinion Gearoid Reidy