Nintendo has announced a global price increase for the Nintendo Switch 2, citing rising memory chip costs and growing pressure on hardware production expenses.
Nintendo also warned that profit could fall by 27 percent in the financial year ending March 2027. The company expects weaker earnings because hardware production has become more expensive. Supply chain problems have also increased costs across the gaming industry.
Despite the warning, Nintendo said the Switch 2 had a strong global launch. The company sold nearly 20 million units worldwide. Popular titles such as Mario Kart World, Pokemon Pokopia and Donkey Kong Bananza helped drive sales.
Analysts believe Nintendo must release more popular games to keep players interested. Experts also said many Nintendo customers are sensitive to price increases. Higher prices could affect future sales if gamers feel the console is too expensive.
Meanwhile, Sony Group Corporation remains positive about its gaming business. Sales of the PlayStation 5 slowed during the last financial year. However, analysts expect Sony to earn more from game sales and online services.
Industry experts also expect Grand Theft Auto VI to boost PlayStation sales later this year. The gaming industry now faces rising technology costs and tougher competition between major console makers.
