Nintendo Switch 2: Analysts Predict High Price, Record-Breaking Launch
2025-03-14 18:03:28Several industry analysts have offered insights into the anticipated launch of the Nintendo Switch 2, providing predictions on its release window, price, production costs, and initial sales performance. These predictions are expected to be either confirmed or refuted by early spring 2025.
While Nintendo has remained relatively silent about its next-generation console since its initial announcement two months prior on March 16th, they've committed to revealing more details during a dedicated Nintendo Direct presentation scheduled for April 2nd.
In anticipation of the upcoming Nintendo Direct, Bloomberg consulted with various analysts to gain a clearer picture of the Switch 2 launch. The resulting predictions present a mixed outlook, with many anticipating a significantly higher price point than previous Nintendo consoles.
Analyst Serkan Toto predicts a retail price of at least $399, marking a 33% increase over the original Switch's $299 launch price. This assessment is echoed by analysts Yijia Zhai of UBS Securities, Robin Zhu of Sanford C. Bernstein, and Hideki Yasuda of Toyo Securities. Hiroshi Yamashina of Macquarie Capital offers an even higher estimate, suggesting a price range between $399 and $449.
The projected price hike is attributed to several factors, including inflation and significant hardware upgrades. Yasuda estimates the cost of the Nvidia system-on-chip (SOC) powering the Switch 2 to be between $130 and $150 per unit, a substantial increase from the estimated $80 cost of the Tegra X1 chip in the original Switch. This leads Yasuda to believe a price as high as $499 is possible.
While tariffs imposed by the previous US administration could further complicate pricing in the United States, Nintendo President Shuntaro Furukawa has downplayed these concerns, suggesting their financial impact will likely be minimal.
Despite the expected price increase, analysts remain optimistic about the Switch 2's sales potential. Zhu predicts Nintendo is aiming for an initial stock of 6 to 8 million units for launch day, potentially making it the largest console launch in gaming history. This aligns with Zhu's earlier projection of 20 million Switch 2 units produced in 2025, with a target release date of June 2025.