Switch 2 Reportedly Too Good a Deal, Investors Want That Fixed

Amid rising industry costs and a declining stock price, Nintendo may face shareholder pressure to increase the price of the Switch 2 console.

A Bloomberg report notes that Nintendo's upcoming financial earnings release--scheduled for May 8--comes at a challenging time. While the company's shares have declined for several months, its first-party game releases, theme park attractions, and The Super Mario Galaxy Movie have all performed well. However, the Switch 2 console is being sold at a loss globally.

The Switch 2 is priced at $450 in the US and $318 for the region-locked Japanese version. While sales have been strong overall--despite a lukewarm Christmas period--investors believe Nintendo should reduce losses or achieve profitability per unit. This may prompt Nintendo to follow Microsoft and Sony by raising the Switch 2 price by at least $50. Unlike the original Switch, which launched at a profit, Nintendo has opted to absorb costs on the Switch 2 and focus on profits from games and accessories.