Nintendo hounded by investors to increase Switch 2 price to protect margins

Bloomberg is reporting this evening that Nintendo is under fire from investors to increase the price of the Nintendo Switch 2 due to a shortage of components and increasing costs. The Kyoto-based company’s stock has retreated now for five straight months, while Sony’s has weathered the storm presumably because they have had no issues rising the pricing of the PlayStation 5 and PlayStation 5 Pro. All eyes will be on Nintendo on Friday when Nintendo is due to hold its earnings briefing.

Nintendo investors are concerned that the $450 Switch 2 is deeply unprofitable. US tech giants are buying up the world’s supply of key components like memory, while trade disruptions from the Middle East war are affecting the cost of shipping and even basic materials like plastics. Japanese peers like Capcom, Koei Tecmo and indeed Sony are also under pressure.

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