In the wake of recent price increases for major consoles like the PlayStation 5 and Xbox Series X|S, attention has shifted toward the Nintendo Switch 2, with industry analysts weighing in on possible changes in pricing strategy.
The latest insights from video game business intelligence firm Niko Partners suggest that Nintendo could be preparing for a global price hike for its next-generation hardware, driven by a mix of economic and industry-specific factors. Since its original release, the Nintendo Switch has enjoyed a consistent price point, which has contributed to its massive global success.
The handheld-console hybrid has sold over 139 million units worldwide as of June 2024, securing Nintendo’s spot as a dominant force in the gaming hardware sector.
However, with the upcoming launch of the Nintendo Switch 2, speculation about pricing adjustments has intensified across both consumer and industry circles. Niko Partners, a leading provider of market research and consumer insight within the video game industry, recently released a report forecasting trends through 2026.
In this report, the firm states that it expects the Nintendo Switch 2 to follow a similar pricing trajectory as Sony and Microsoft, as a result of increased tariffs, higher memory costs, and ongoing macroeconomic shifts.
"We believe the Switch 2 is set to follow in Sony and Microsoft’s footsteps with its own price hike driven by the impact from tariffs, increased memory costs, and broader macroeconomic conditions," Niko Partners noted.
They highlighted that despite challenges such as tariffs affecting production in China, Japan, and Vietnam, Nintendo managed to maintain its $449 starting price last year.
However, recent spikes in demand for AI data centers have driven up RAM and storage component prices, making it more challenging for hardware manufacturers to hold the line on pricing. The report goes on to predict that Nintendo could discontinue its $449 entry-level Switch 2 model in favor of selling a $499 or higher-priced bundle.
Such a move would align Nintendo with current industry practices, given the shifts adopted by PlayStation and Xbox in recent cycles. Nintendo president Shuntaro Furukawa was asked about the prospect of a price increase for the Switch 2 during a recent financial briefing.
While Furukawa declined to comment directly on hypothetical future pricing, he acknowledged the impact of current memory prices, stating that there has been no immediate effect on the company's financials so far, but that Nintendo will continue to monitor the market situation closely. This analysis from Niko Partners follows last week’s headlines about the discovery of a "mystery code" in recent Nintendo software, which has fueled rumors of a new Switch 2 model among fans and industry watchers.
Despite the ongoing speculation, Nintendo has yet to issue an official announcement regarding pricing or confirmed release details for the next iteration of its popular hardware platform. As the gaming industry navigates shifting economic conditions and the evolving technology landscape, all eyes remain on how Nintendo will position the Switch 2 and whether it will follow PlayStation 5 and Xbox Series X|S with a price adjustment.
For now, both industry professionals and consumers await official news during upcoming Nintendo Direct presentations and further statements from the company.
The latest insights from video game business intelligence firm Niko Partners suggest that Nintendo could be preparing for a global price hike for its next-generation hardware, driven by a mix of economic and industry-specific factors. Since its original release, the Nintendo Switch has enjoyed a consistent price point, which has contributed to its massive global success.
The handheld-console hybrid has sold over 139 million units worldwide as of June 2024, securing Nintendo’s spot as a dominant force in the gaming hardware sector.
However, with the upcoming launch of the Nintendo Switch 2, speculation about pricing adjustments has intensified across both consumer and industry circles. Niko Partners, a leading provider of market research and consumer insight within the video game industry, recently released a report forecasting trends through 2026.
In this report, the firm states that it expects the Nintendo Switch 2 to follow a similar pricing trajectory as Sony and Microsoft, as a result of increased tariffs, higher memory costs, and ongoing macroeconomic shifts.
"We believe the Switch 2 is set to follow in Sony and Microsoft’s footsteps with its own price hike driven by the impact from tariffs, increased memory costs, and broader macroeconomic conditions," Niko Partners noted.
They highlighted that despite challenges such as tariffs affecting production in China, Japan, and Vietnam, Nintendo managed to maintain its $449 starting price last year.
However, recent spikes in demand for AI data centers have driven up RAM and storage component prices, making it more challenging for hardware manufacturers to hold the line on pricing. The report goes on to predict that Nintendo could discontinue its $449 entry-level Switch 2 model in favor of selling a $499 or higher-priced bundle.
Such a move would align Nintendo with current industry practices, given the shifts adopted by PlayStation and Xbox in recent cycles. Nintendo president Shuntaro Furukawa was asked about the prospect of a price increase for the Switch 2 during a recent financial briefing.
While Furukawa declined to comment directly on hypothetical future pricing, he acknowledged the impact of current memory prices, stating that there has been no immediate effect on the company's financials so far, but that Nintendo will continue to monitor the market situation closely. This analysis from Niko Partners follows last week’s headlines about the discovery of a "mystery code" in recent Nintendo software, which has fueled rumors of a new Switch 2 model among fans and industry watchers.
Despite the ongoing speculation, Nintendo has yet to issue an official announcement regarding pricing or confirmed release details for the next iteration of its popular hardware platform. As the gaming industry navigates shifting economic conditions and the evolving technology landscape, all eyes remain on how Nintendo will position the Switch 2 and whether it will follow PlayStation 5 and Xbox Series X|S with a price adjustment.
For now, both industry professionals and consumers await official news during upcoming Nintendo Direct presentations and further statements from the company.
