Nintendo's Switch 2 console sales just dropped significantly

Nintendo's Switch 2 console sales have plummeted 34.4 percent from last year's same quarter to 3.82 million units. However, the company remains unperturbed by the decline. Nintendo attributes the drop to a new pricing strategy set to take effect on September 1, 2026, when the console's price will rise from $450 to $500 in the US.

Despite this, the Switch 2 has sold 23.68 million units, surpassing the original Switch's sales. The company is confident in its forecast of 16.5 million units for the fiscal year ending in March next year. While disappointing, the sales drop hasn't significantly affected Nintendo's overall revenue, as strong software sales, including Tomodachi Life and Pokémon Pokopia, helped the company beat revenue expectations.

However, increased component prices and tariff measures are expected to impact the cost of sales by approximately ¥100.0 billion ($633 million).