Niko Partners Predict Switch 2 Global Price Increase Amid AI Boom

If you have been holding off on picking up Nintendo’s latest console, the window to grab one at its launch price is closing fast. Despite successfully launching the Switch 2 at a competitive price of $449 in June 2025, reports suggest the days of this entry-level pricing are numbered. According to a new prediction from Niko Partners via VGC, a global price hike for the Switch 2 is all but inevitable in 2026. The firm warns that Nintendo is facing a "perfect storm" of economic pressures that will likely force them to follow in the footsteps of Sony and Microsoft, passing rising costs onto the consumer sooner rather than later. 

Experts predict that instead of officially announcing a "price hike," Nintendo may fundamentally change how it sells the console by discontinuing the standalone $449 base model entirely. In its place, we expect to see "forced bundles,” high-value packages paired with major titles like Mario Kart World—that effectively raise the entry price to $499 or higher. This strategy allows Nintendo to technically preserve its hardware margins while testing how much gamers are willing to pay, a tactic the company has already tested with recent price upticks on Joy-Con and Pro Controllers.

AI Sector Boom and Tariffs Will Fuel Cost Surge

The primary forces driving this potential $50 increase are political pressure and a sharp surge in the cost of making the console itself. Manufacturing the Switch 2 is becoming significantly more expensive due to the booming AI sector, which is buying up available semiconductor resources. Reports indicate that the price of 12 GB RAM modules, essential for the system's performance, has jumped by approximately 41%, while 256GB memory used for storage has seen an 8% cost increase, as reported by Kotaku. 

It isn't just raw materials driving up the bill; new political trade rules are also hitting Nintendo’s wallet. Imports from Vietnam, a key hub for Switch 2 assembly, now face doubled tariffs of 20%. Nintendo President Shuntaro Furukawa has acknowledged the precarious situation, stating that the company is keeping a close eye on profit margins as memory prices and tariffs remain an ongoing issue. While he initially noted that there was no immediate impact on earnings, he recently admitted to the Japanese Publication Kyoto Shimbun that the current memory market is very volatile and that significant external factor shifts could force adjustments. 

This aligns with recent moves by the company; just last August, Nintendo increased the price of the original Switch and Switch OLED models in the US due to "market conditions," proving that price hikes are no longer off the table for the gaming giant.

This financial turbulence comes at a difficult time for Nintendo. Although the Switch 2 is outselling its predecessor by a wide margin in Japan, the company’s stock has dipped 23.45% over the last three months, and Christmas hardware sales in the US were reportedly down 35% compared to the original Switch’s 2017 debut. 

With Nintendo seemingly prioritizing margin preservation over unit expansion, the company will likely need a massive software hit, like a new 3D Mario or Zelda adventure, to justify the higher cost of entry when the shift inevitably happens.