Nintendo has confirmed that the upcoming Switch 2 may be sold at a loss, as the company states that the planned price increase does not fully cover the rising manufacturing costs. This revelation adds to the ongoing speculation about Nintendo’s strategy and direction.
One of the most intriguing mysteries surrounding Nintendo is why they haven’t held a major first-party Nintendo Direct event this year. Unlike Sony and Xbox, which have already hosted their own events, Nintendo typically holds an event in January or February. However, despite six separate Directs so far, none have been significant, and no major new games have been announced this year.
While it’s tempting to speculate on the reasons behind this, the key question is whether this is part of Nintendo’s plan or if they see it as a mistake. Although the answer remains unclear, Nintendo has promised to improve in the future.
The exact new UK price for the Switch 2 is still unknown, as Nintendo has only announced the price for Japan, the US, and Europe. It is expected to be around £430, with a likely increase of approximately £30.
This move follows in the footsteps of Sony and Microsoft, who have both increased the prices of their consoles multiple times. The current memory crisis, where RAM chips are being bought in bulk for AI data centres, has contributed to these price hikes.
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The Switch 2 is already unusually expensive for a Nintendo console, and it seems clear that the company is not happy with the situation. President Shuntaro Furukawa has issued an open apology to fans:
“We sincerely apologise to our customers for the considerable inconvenience and trouble this will cause. While we wanted to prioritise a wide adoption, it was challenging to bear the rising costs over a long period. The [new] pricing does not fully account for all cost increases.”
This statement suggests that Nintendo is still making less money on the console than before, even with the price increase. It could also hint at further price hikes, similar to what happened with Sony and Microsoft.
Furukawa did not provide details on the Switch 2’s upcoming lineup or a future Nintendo Direct. However, he stated:
“We will prepare a robust software lineup to enhance the Switch 2 ownership value. We will work diligently to overcome this barrier.”
Although it’s hard to predict Nintendo’s moves, especially considering the unexpected Star Fox announcement last week, it’s now likely that they won’t have a major Direct until their usual mid-June time slot.
While it’s difficult to know what they’ll announce, there have been several recent Nintendo rumours, including Star Fox. The most credible one at the moment is a Zelda: Ocarina Of Time remake, which many reliable sources claim will be released this year.
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