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

• Nintendo said it sold 2.67 million units of the Switch 2 in the three months ended Sept. 30, down 41% from the same period last year.
• The Japanese gaming giant was forced to hike prices of the Switch 2 to contend with rising memory prices.
• Investors hope that "The Legend of Zelda: Ocarina of Time," a remake of one of Nintendo's most iconic games, could boost Switch 2 sales in the coming weeks.

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Follow your favorite stocksCREATE FREE ACCOUNTA Super Mario character is pictured at a Nintendo display ahead of the launch of the company's Switch 2 console, at an electronics store in Nagoya, Japan, June 2, 2025.Richard A. Brooks | Afp | Getty Images

Sales of Nintendo's flagship Switch 2 plunged in its fiscal second quarter after the Japanese gaming giant rolled out price hikes amid soaring memory costs.

Nintendo said it sold 2.67 million units of the Switch 2 in the three months ended Sept. 30, down 41% from the same period last year. That was also lower than the 3.82 million units sold in the prior quarter.

During the quarter, Nintendo rolled out price increases for the Switch 2 in the U.S., Canada and Japan after hiking the cost of the device in Japan earlier in the year.

Memory, a core component of Nintendo's consoles, continues to face a supply shortage and huge demand, which is driving an unprecedented price surge for the chips.

Still, the Japanese gaming giant stuck to its previous Switch 2 sales forecast of 16.5 million units in the current fiscal year, which ends in March 2027.

Here's how Nintendo did in its fiscal second quarter, compared with LSEG average estimates:

• Revenue: 448.2 billion Japanese yen ($2.8 billion) versus 481.37 billion yen expected
• Net profit: 73.5 billion yen versus 82.16 billion yen

Investors eye future releases

While the Kyoto-headquartered firm has had some strong games this year, including "Tomodachi Life: Living the Dream" and "Pokémon Pokopia", which became a surprise viral hit, there are no major marquee titles.

Investors hope that "The Legend of Zelda: Ocarina of Time," a remake of one of Nintendo's most iconic games, could boost Switch 2 sales in the coming weeks. The game was released on Thursday.

"Nintendo's only real blockbuster this fiscal year is the Ocarina Of Time remake. It's not enough to make investors happy, especially after the device is now as expensive as it is," Serkan Toto, CEO of Kantan Games, told CNBC.

"It's getting harder and harder to sell video game hardware these days, and only hits help. Nintendo must step on the gas and deliver more big games next fiscal year to make sure the Switch 2 momentum continues."

Nintendo also has new Pokémon games slated for release in 2027.

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