Nintendo Switch 2 sales fall about 40% after price hikes

Nintendo's sales of its flagship Switch 2 console fell sharply in its fiscal second quarter, which ended in September. The drop came after the Japanese gaming company raised prices because memory chips became more expensive. The fall was between about 40 and 41 percent.

The company still reported higher profit for the quarter. That gap between profit and console sales shows the company made more money from each unit sold, and from games and other products, even though fewer consoles moved off shelves.

Higher prices and rising costs

Nintendo rolled out the price increases as the cost of memory, the chips that store data in electronic devices, climbed sharply. Companies across the electronics industry have faced similar pressure. Nintendo has not said how long the higher prices will stay in place.

A higher price tag on a console usually means fewer buyers in the market and slower growth for the platform as a whole. Switch 2 buyers who are considering a purchase should check current prices with retailers before deciding.

What is not yet known

The exact number of consoles sold in the quarter has not been given, and the new prices in rupees have not been stated. It is also not yet clear how demand will respond in the months ahead. Nintendo's next earnings update will show whether sales recover as the new prices settle in.