Nintendo anticipates 16.5 million Switch 2 units sold annually and increases prices

Nintendo stated on Friday that it anticipates selling 16.5 million Switch 2 systems in the fiscal year that ends in March 202. That operating profit will rise by 2.7% to 370 billion yen ($2.36 billion).

In the fiscal year that concluded on March 31, Nintendo sold 19.9 million Switch 2 units.

The console manufacturer’s suggested retail prices, which range from 49,980 to 59,980 yen, are currently being reviewed. Additionally, starting on September 1, it intends to increase the cost of the Switch 2 in the US, Canada, and Europe.

According to President Shuntaro Furukawa, the decision to hike pricing was influenced by a number of factors. Including rising costs for components, such as memory, and exchange rates.

Nintendo says rising component costs, particularly memory, and tariffs will add about 100 billion yen to costs this fiscal year.

Nintendo said annual operating profit rose 27.5% to 360.1 billion yen last fiscal year, missing analyst estimates.

Investors are concerned about the potential impact of rising memory prices on margins along with the fact that the Switch 2 game pipeline is considered thin.

These concerns weighed on Nintendo’s stock despite the huge success with “Pokémon Pokopia” and the popularity of the latest “Super Mario” movie.