The big picture: Following the stellar success of the original Switch, many are eagerly awaiting its successor. In January, Nintendo gave fans their first official glimpse of the second-generation Switch, confirming that it will be called the Switch 2. Unfortunately for prospective buyers, a new report suggests that it may come with a significant price increase over its predecessor.
According to Bloomberg, several analysts with insider knowledge, as well as Nintendo's hardware and software partners, expect the Switch 2 to be priced between $400 and $500.
One such analyst, Toyo Securities' Hideki Yasuda, predicts the console could retail for as much as $499. He attributes the potential price hike to the cost of the Switch 2's processor, which is expected to be significantly more expensive than the chip powering the first-generation model. The original Switch's Nvidia chip costs around $80, while the Switch 2's chip is estimated to be in the $130 – $150 range.
Beyond the processor, looming US tariffs on Chinese imports could also influence the Switch 2's pricing. However, Nintendo is hedging its bets by assembling the device in Vietnam in addition to China.
Macquarie Capital analyst Hiroshi Yamashina offers a slightly lower estimate, suggesting the Switch 2 could be priced between $399 and $449. He also predicts that Nintendo could ship around 20 million units of the Switch 2 in its first year on the market.
Regardless of the reason for the price hike, the Switch 2 won't be nearly as affordable as the original model – bad news for gamers everywhere. Whether it's priced at $400 or $500, it would represent a significant markup over the first-generation Switch, which launched in 2017 for $300.
Despite the higher price tag, analysts and investors expect the Switch 2 to be a massive hit, driven by a strong lineup of popular titles. According to Tokyo-based industry analyst Serkan Toto, Nintendo is expected to sell "boatloads" of Switch 2 units in the first few months, "almost regardless of the price."
Toto added that Nintendo will likely release major titles such as Mario Kart, 3D Mario, Pokémon Legends: Z-A, and Metroid Prime 4 during the Switch 2's first year on the market. Meanwhile, blockbuster third-party games like Call of Duty are also expected to be available on day one, further boosting the console's appeal.
Industry analyst Robin Zhu from investment firm Sanford C. Bernstein predicts the Switch 2 will launch in June with an initial inventory of 6 to 8 million units. If Zhu's estimates are accurate, it would mark the biggest gaming console launch in history, surpassing the 3.4 million PS5 units Sony sold in its first month.
