Nintendo hiking Switch 2 prices by hefty amount and still warns sales will fall next year

Nintendo’s annual profit surged 52% in the last fiscal year, lifted by solid sales of its Switch 2 machines and software, the company announced Friday.The Japanese video-game company behind the Super Mario and Pokemon franchises also announced it was raising prices, citing challenging business conditions.It recorded a 424 billion yen ($2.7 billion) net profit for the fiscal year that ended in March, up from nearly 279 billion yen the year before.Annual sales rose 99% to 2.3 trillion yen ($15 billion) from 1.2 trillion yen a year earlier, as demand for Switch 2 held up, although sales for the first-generation Switch declined.Nintendo said it was raising the Switch 2 price in Japan to 59,980 yen ($382), effective May 25, from 49,980 yen ($318), “in light of changes in market conditions, and after considering the global business outlook.”In the US, the price will rise to $499.99 in September, from $449.99.Nintendo, which is based in the ancient Japanese capital of Kyoto, did not go into details.But all major Japanese exporters are having to cope with President Trump’s tariff hikes and other higher costs that have been worsened by the war in Iran.Nintendo Co., which did not break down quarterly results, expects an 11% decline in sales for the fiscal year through March 2027, to 2.1 trillion yen ($13 billion).

The projection takes into account the planned price hikes.On the plus side, Nintendo’s film “The Super Mario Galaxy Movie” has grossed more than $800 million since its release a month ago.Among its recent successful game software offerings were “Mario Kart World” and “Donkey Kong Bananza.” Morning Report delivers the latest news, videos, photos and more.Please provide a valid email.

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