Nintendo Switch 2 sales plunge 41% as price hikes and memory crunch bite

by | Nov 8, 2026 | Stock Market

Nintendo Switch 2 sales plunge 41% as price hikes and memory crunch bite

Nintendo reported a significant decline in Switch 2 unit sales during its fiscal second quarter, with 2.67 million devices sold in the three-month period ended Sept. 30. This represented a 41% decrease compared to the equivalent period in the prior year and also trailed the 3.82 million units sold in the preceding quarter.

The sales decline came as Nintendo implemented price increases for the Switch 2 across multiple markets, including the U.S., Canada, and Japan, following earlier price adjustments made in Japan. The cost escalations were driven partly by elevated memory chip prices, as the component faced both supply constraints and exceptionally strong demand, contributing to what observers characterized as unprecedented pricing pressures on semiconductor costs.

Despite the quarterly sales contraction, Nintendo maintained its full-year sales guidance, projecting 16.5 million Switch 2 units would be sold in the current fiscal year ending in March 2027. Industry analysts attributed the subdued results partly to a limited lineup of major gaming releases, though the company did see some success with titles including “Tomodachi Life: Living the Dream” and “Pokémon Pokopia,” the latter emerging as an unexpected viral phenomenon.

Looking ahead, industry observers pointed to upcoming releases as potential catalysts for sales recovery. “The Legend of Zelda: Ocarina of Time,” a remake of a classic Nintendo franchise title, launched on Thursday and is widely viewed as a key driver for console sales momentum in coming weeks. Additionally, new Pokémon releases are scheduled for 2027, which could provide additional support for hardware demand in the subsequent fiscal period.

Analysts noted the challenging environment for video game hardware sales generally, with success increasingly dependent on strong software performance. Observers cautioned that Nintendo would need a robust pipeline of blockbuster titles in the next fiscal year to sustain Switch 2 momentum amid competitive market conditions and elevated hardware pricing.

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