Core Viewpoint - The gaming industry is closely monitoring the potential price increase of Nintendo's next-generation console, Switch 2, with analysts believing that a price adjustment is likely in the future due to rising memory costs and tariffs [1][7]. Group 1: Price Adjustment Predictions - Niko Partners forecasts that the price of Switch 2 may rise from $449.99 to $499.99 by 2026, influenced by increased memory costs and tariffs [1][7]. - The report emphasizes that the impact of tariffs and rising costs is a global concern, noting that competitors like Xbox and PlayStation 5 have already raised their prices due to similar factors [1][7]. Group 2: Market Performance and Strategy - The initial pricing strategy of Nintendo helped drive sales, with the console achieving multiple sales records upon launch in June 2025, but sales have shown signs of slowing during the recent holiday season [1][7]. - There is a possibility that Nintendo may discontinue the $449.99 version of Switch 2 without games, retaining only higher-priced bundles, as indicated by a recent internal memo from GameStop regarding the discontinuation of the Mario Kart bundle [6][9]. Group 3: Cost Pressures and Consumer Impact - Nintendo's president, Shuntaro Furukawa, acknowledged that cost pressures from tariffs are a significant concern for the company, and while they are not ruling out passing costs to consumers, they are aware that price increases could negatively affect market performance [6][9].