Nintendo raising Switch 2 price by $50 due to rising memory costs

Nintendo announced on May 8, 2026, that it will raise the price of its upcoming Switch 2 console by $50, bringing it to $499.99 starting September 1, 2026. The price adjustment comes as a response to rising component costs, particularly memory chips, which have surged due to increased demand from AI data centers. The company also cited tariffs as a contributing factor, estimating the changes will add $638 million in costs for the current financial year. President Shuntaro Furukawa stated in an earnings briefing that the price increase aims to stabilize profitability at levels comparable to the previous fiscal year. The move aligns with broader industry trends, as competitors like Sony and Microsoft have also raised prices for their consoles. Sony increased the standard PS5 price by $100 in April, while Microsoft adjusted Xbox Series X and S prices earlier. The surge in memory chip costs reflects the growing strain on supply chains caused by the AI boom, forcing tech companies to pass higher expenses onto consumers. Nintendo’s decision follows similar adjustments by other major players in the gaming industry, signaling a shift in market dynamics. The company’s financial outlook remains cautious, with Furukawa emphasizing the need to balance costs while maintaining competitiveness in the console market.