Switch 2 Sales Drop 41% as Price Hikes and Memory Costs Bite

Switch 2 sales fell to 2.67 million units in the July to September quarter, down 41% from a year earlier, Nintendo reported on November 5, 2026. The drop came as the console's price rose and a global memory chip shortage pushed up costs, yet Nintendo kept its full-year target of 16.5 million Switch 2 units.

For players and investors, the numbers show the console's second year is turning out much slower than its record launch. Across the first half of the fiscal year, from April to September, the Switch 2 sold 6.49 million units, down 37.4% from 10.36 million, according to Nintendo's earnings presentation.

How Bad Were Nintendo's Q2 Results?

Quarterly revenue came in at 448.2 billion yen ($2.8 billion), below the 481.37 billion yen analysts expected, while net profit of 73.5 billion yen also missed the 82.16 billion yen estimate, CNBC reported citing LSEG data. Switch 2 sales were also lower than the 3.82 million units Nintendo shipped in the previous quarter.

The half-year picture is more mixed. Revenue fell 12.1% to 966.04 billion yen, but operating profit jumped 49.1% to 216.5 billion yen. That boost came mostly from a larger share of high-margin software and a refund of U.S. tariffs Nintendo had previously booked as a cost.

Why Are Switch 2 Sales Falling?

Price is the main reason. Nintendo raised the Switch 2 to $500 in the U.S., $50 above launch, with increases in Canada, Europe and Japan as well. Memory, a key console component, is in short supply worldwide as AI data centers soak up chips, and that drives up the cost of every unit.

Comparison with the launch year also hurts. The Switch 2 sold 19.86 million units in its first fiscal year, and Nintendo now expects 16.5 million this year, a 16.9% decline. The original Switch, by contrast, kept growing for five straight years. Supply issues extend beyond memory too, as the recent exit of a key Switch cartridge supplier showed.

What Is Still Working for Nintendo?

• Switch 2 software sales rose 18.8% to 24.49 million units in the half.
• Original Switch software climbed 6.8% to 65.73 million units, led by Tomodachi Life: Living the Dream at 8.81 million.
• Digital sales grew 60.5% to 249.6 billion yen.
• IP revenue, helped by The Super Mario Galaxy Movie, rose 87.9% to 62.7 billion yen.

Nintendo is now counting on The Legend of Zelda: Ocarina of Time remake, released the same day as the results, plus a busy November release slate to lift holiday demand. Analyst Serkan Toto of Kantan Games told CNBC, "Nintendo's only real blockbuster this fiscal year is the Ocarina Of Time remake. It's not enough to make investors happy, especially after the device is now as expensive as it is."

What Does This Mean for Switch 2 Buyers?

A price cut looks unlikely while memory costs stay high, so anyone waiting for a cheaper Switch 2 should not count on one this holiday season. Our view: the 16.5 million target now depends heavily on Zelda and the holiday quarter, and if those disappoint, Nintendo may have to trim its forecast in February.

Nintendo Q2 FY2027 at a glance

• Switch 2 units, July to September: 2.67 million (down 41%)
• Switch 2 units, April to September: 6.49 million (down 37.4%)
• Q2 revenue: 448.2 billion yen ($2.8 billion)
• Q2 net profit: 73.5 billion yen
• Full-year Switch 2 forecast: 16.5 million units (unchanged)
• Full-year revenue forecast: 2.05 trillion yen