Why Nintendo Switch 2 costs more than the previous model? 5 factors that may have increased costs

The video game giant Nintendo officially presented the portable console Switch 2available from June 5 at the price of 469.99 euros. The announcement, which took place on April 2, 2025, also includes Bundle which includes the console and the game Mario Kart World It will instead be available for 509.99 euros. A price decidedly higher than that of the previous model. The cost of First-Party games has also undergone a significant increase: Mario Kart World will cost 79.99 euros in digital format and 89.99 euros in physical format, while Donkey Kong Bananza It will be sold for 69.99 euros digitally and 79.99 euros in physical format. These price increases have aroused inevitable discussions between consumers and analysts in the sector. But what are the factors that contributed to this increase?

1. Semiconductors crisis and increase in production costs

There Covid-19 pandemic caused a significant Interruption in the supply chain global, leading to a deficiency of semiconductors. This shortage hardly hit the electronics industry, increasing the costs of the essential components for the production of electronic devices.

Despite the switch 2 arrives on the market two years after this emergency, its design (and the relative component supply chain) started at that time. The semiconductor crisis therefore still continues to influence the positioning of the final products.

2. Global inflation and increase in the costs of raw materials

In recent years, inflation has affected several world economies, causing a general increase in prices. In particular, the cost of raw materials necessary for the production of electronic devices, such as the lithium for batteries and the copper For the circuits, it has increased significantly.

These increases translate into higher production costs, which are transferred to end consumers in the form of higher prices for the console and its accessories. Switch 2, a bit like smartphones, is a rich device inside them rare earth which, however, continue to generate commercial wars (and not only) around the world.

3. International duties and commercial tensions

Commercial tensions between the United States and China led to the imposition of duties on various electronic products. Although Nintendo is a Japanese company, much of its production takes place in countries such as Vietnam and the Cambodia. However, recent US tariff policies have imposed duties up to 49% On products imported from these countries, directly influencing the production cost of the Nintendo Switch 2.

All this without forgetting the duties that Trump has recently imposed on products of Japanese origin. A 24% tax which will have an inevitable impact on the marketing of devices such as the new console of the Japanese company.

4. Technological innovations and hardware improvements

Nintendo Switch 2 has several technical improvements than the previous model, including a 7.9 -inch larger screen with 1080p resolution, 4K support in Docked mode and new controllers Joy-Con with advanced features. These technological updates involve higher development and production costswhich certainly reflect on the final price of the console.

5. Increase in video games development costs

The development of modern video games requires significant investments in terms of time, resources and qualified personnel. With the increase in consumer expectations for advanced graphics, complex worlds and online functionality, the games production costs have increased. We have dedicated an in -depth analysis to this topic, as the tendency by software houses to enlarge the development teams has led the sector to an important economic crisis.

Consequently, companies have increased the price of games to compensate for these costs (and, paradoxically, the related losses). For example, Mario Kart World It will be sold at a higher price than the previous titles of the series. ​