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Nintendo sold far fewer Switch 2 consoles in the latest quarter. The company sold 2.67 million units in the three months to September 30, 2026. In the same period last year, it sold 4.54 million. That is a drop of 41%.
The fall comes as Nintendo raises console prices to deal with higher costs. Memory chips are now more costly and harder to get. Even so, Nintendo has kept its goal of selling 16.5 million Switch 2 units in the year ending March 2027.
The company's financial results also fell short of expectations. Revenue was 448.2 billion yen, or about USD 2.8 billion, below analysts' expectations of 481.37 billion yen.Net profit came in at 73.5 billion yen, below analysts' expectations of 82.16 billion yen.
These numbers show how hard it is to keep sales up when costs rise. Nintendo must pay more to make each console, but buyers may not want to pay more to own one.
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Nintendo first raised Switch 2 prices in Japan. It later did the same in the United States and Canada. The cost of memory is a big reason. AI data centers need huge numbers of chips, and that leaves less supply for others.
Nintendo is now counting on new games. It recently launched a remake of The Legend of Zelda: Ocarina of Time. The game could pull in shoppers during the holiday season. New Pokémon games are also set for 2027.
Still, analysts say Nintendo needs more big titles to keep the console selling well.
Nintendo's Switch 2 had a rough quarter, but the year is far from over. The company has maintained its sales target, indicating confidence in holiday demand and its upcoming game lineup.
Much now depends on whether shoppers accept higher prices and whether new games give them a reason to buy. Holiday sales will be the real test. The next few months will show if Nintendo can turn things around.