Investors Urge Nintendo to Raise Switch 2 Price Amid Losses

Investors are pressing Nintendo to raise the retail price of the Switch 2 after the company disclosed the $450 console is being sold at a loss because of higher component costs and shipping disruptions through the Strait of Hormuz.

Several institutional investors have told Nintendo to move quickly to lift the Switch 2 price to reduce hardware losses and increase revenue per unit. Component shortages have been driven in part by demand from large artificial intelligence data centers that are consuming chips and other parts used in consumer electronics, pushing input prices upward. Separately, tensions affecting shipping through the Strait of Hormuz have caused delays and higher freight costs for consoles and components.

The market reaction has been negative. At the time of reporting, Nintendo shares traded around 7,597 JPY, down from a peak of 14,655 JPY in August 2025. Some investors point to competitor pricing as a reference: Sony has raised prices across its PlayStation 5 range, with the higher-end PS5 Pro now listed at $899.99 in the United States.

Other shareholders warn that a higher Switch 2 price could reduce consumer demand and slow sales. Nintendo executives have indicated a price adjustment is possible but have also signaled a willingness to accept short-term hardware losses to build an install base and support software sales.

Nintendo is scheduled to release its latest financial results on Friday. Investors expect the report to provide details on how the Switch 2 is affecting overall profit margins and to include commentary on pricing strategy, component cost trends and shipment forecasts.

Nintendo’s current software slate offers limited near-term hardware support. Recent and upcoming titles such as Yoshi and the Mysterious Book, Splatoon Raiders and Fire Emblem: Fortune’s Weave are not widely viewed as major system sellers. Earlier in the year, Pokémon Pokopia provided a notable boost to Switch 2 sales. Analysts and investors will watch whether the company plans to accelerate major game releases or marketing to sustain momentum without a hardware price increase.

Shareholders remain divided over whether to raise the console price to cover rising costs or to accept initial hardware losses to grow the user base and software revenue. The upcoming earnings release and any management commentary will be closely examined for signals about Nintendo’s next steps on pricing and supply forecasts.