# Nintendo warns of rising costs as Switch 2 sales slow

- URL: https://talkfuse.com/story/nintendos-switch-2-console-sales-just-dropped-significantly/
- Published: 2026-08-06T11:01:49+00:00
- Updated: 2026-08-08T08:13:24+00:00
- Original publisher: Engadget
- Original article: https://www.engadget.com/2231415/nintendo-financials-switch-2-sales-drop/
- Topics: Entertainment, Gaming

## Key points

- Switch 2 quarterly sales fell 34.4 per cent, but Nintendo remains confident.
- A US price rise and higher costs could weaken demand.
- Strong games and tariff refunds supported Nintendo’s revenue.

## Summary

Nintendo reported that Switch 2 console sales fell by 34.4 per cent year on year to 3.82 million units in the latest quarter, but said demand remained healthy thanks to new game releases. The decline matters because the company plans to raise the US console price from $450 to $500 in September, while higher component costs and tariffs could put further pressure on sales and profitability.

Total Switch 2 sales have reached 23.68 million, ahead of the original Switch’s pace, and Nintendo has retained its forecast of 16.5 million console sales for the fiscal year ending next March. Strong software sales helped it exceed revenue expectations, including 7.96 million copies of Tomodachi Life: Living the Dream in three months, while tariff refunds added about $300 million; Nintendo also expects rising memory prices and tariffs to add roughly 100 billion yen ($633 million) to costs.

## Coverage

- [Engadget: Nintendo warns of rising costs as Switch 2 sales slow](https://www.engadget.com/2231415/nintendo-financials-switch-2-sales-drop/)
- [IGN: Switch 2 Sales Down Year-on-Year After 2025's Explosive Launch, Though Nintendo Insists Adoption Still Compares 'Favorably' to Original Switch](https://www.ign.com/articles/switch-2-sales-down-year-on-year-after-2025s-explosive-launch-though-nintendo-insists-adoption-still-compares-favorably-to-original-switch)

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.