Nintendo’s own shareholders are pushing the company to increase the price of the Switch 2, arguing that the current business model — selling the console at a loss — is hurting the stock price even as the hardware itself enjoys a successful launch.

The demand comes from institutional investors who want Nintendo to follow the strategy adopted by Sony and Microsoft in recent years. Both rivals raised the prices of the PlayStation 5 and Xbox Series X/S in response to global economic headwinds, and Nintendo shareholders now believe the same logic should apply to the Switch 2.

The numbers behind the pressure

According to the Daily Fix report on which this article is based, Nintendo is taking a loss on every Switch 2 unit sold. That statement alone is enough to alarm investors: hardware sold at a loss is a common tactic early in a console’s lifecycle, but it becomes a problem if it persists or if the overall financial picture degrades. The report states that while the Switch 2 launch was “massively successful,” holiday sales were “strong, but slow.” That slowdown appears to have rattled Wall Street. Nintendo’s stock price has suffered as a result.

Shareholders are not making abstract complaints. They are pointing to concrete examples: Sony raised the PS5 price in most major markets in 2022 and again in select regions in 2023. Microsoft followed suit with the Xbox Series X in several countries, citing inflation, currency fluctuation, and supply chain costs. The message to Nintendo is: you are leaving money on the table, and your stock is paying the price.

Nintendo’s usual pricing philosophy

Nintendo has historically been more conservative than its competitors when it comes to hardware pricing. The company prefers to sell consoles at a profit from day one, or at least break even. The Switch 2 appears to break that tradition. Selling at a loss suggests that Nintendo either felt it needed an aggressive launch price to win over a cost-sensitive audience or that component costs are higher than anticipated. Either way, the shareholders want relief.

Raising the price now would be risky. The Switch 2 launch was successful, but the video game market is still dealing with post-pandemic contraction and a softening economy. A price hike could slow adoption. But the alternative — continued losses per unit — depresses margins and stock value. Shareholders are betting that the brand’s strength and the software lineup can absorb a price increase.

What the rivals did

Sony and Microsoft both acted in 2022 and 2023. Sony increased the PS5 price by $50 in most countries except the United States, citing “global economic environment” and “high inflation.” Microsoft raised the Xbox Series X price in several markets, including Japan and Sweden, while keeping the U.S. price steady. Both companies were criticized at the time, but both saw continued strong hardware sales. Nintendo shareholders see that as a case study: the market accepted the increases.

The economic conditions that pushed Sony and Microsoft have not eased. Inflation remains higher than central bank targets in many regions, and the yen’s weakness has been particularly painful for Japanese companies like Nintendo that earn significant revenue in dollars and euros. A price increase on the Switch 2 would protect Nintendo’s profitability in yen terms.

Other news from the Daily Fix

The same briefing that outlined Nintendo’s shareholder situation also covered two other stories.

Analysts now suggest that Grand Theft Auto 6 could become the most expensive video game ever made. The projected price tag reflects years of development on Rockstar’s flagship title. While no official price has been announced, the speculation centers on the possibility of a higher-than-standard $70 base price or even premium editions above $100. The report did not provide a specific analyst firm or dollar figure, only the claim of a “astronomical price tag.” GTA 6 is already one of the most anticipated games in history, and the cost of production — spanning multiple studios, a full single-player campaign, and an evolving online mode — would justify a premium price, the analysts argue.

In a different corner of the industry, Ubisoft and an unnamed leaker engaged in a public exchange on social media over an AI-doctored screenshot. The specifics of the screenshot and the content it depicted were not detailed in the briefing, but the incident points to the growing tension between official game marketing and unofficial leaks, especially as generative AI tools make it easier to fabricate convincing images. The brief exchange signals that Ubisoft is monitoring leaks more aggressively, and that the leaker community is fighting back.

What comes next for Nintendo

Nintendo has not announced any change to the Switch 2’s price. The company typically announces hardware price adjustments either at major events like E3 (now Summer Game Fest) or via quiet press releases. Shareholders will likely press the issue at the next investor meeting. If Nintendo does raise the price, it will probably be framed as a response to global economic volatility, not shareholder demand — but the connection is clear.

For consumers, the implication is simple: if you want a Switch 2 at the current price, now is the time to buy. A price increase of $50 to $100 would not be unprecedented. The Switch 2 is a strong product with a good launch lineup. Whether it can survive a price bump depends on how much room the market has left to absorb higher costs.

Nintendo’s situation is unusual because the company is profitable overall, but the hardware unit itself is bleeding money. That kind of mismatch rarely goes unpunished by the stock market. The shareholder pressure is rational, but the question is whether Nintendo believes the long-term cost of a price hike — slower adoption, consumer backlash — outweighs the short-term pain of a depressed stock price.

The coming months will answer that question. For now, the Switch 2 remains at its launch price, and Nintendo is betting that the strength of its game lineup can eventually turn the hardware into a profitable venture. The shareholders are betting that the risk of raising the price is smaller than the risk of doing nothing. One of those bets is going to lose.