Game On: Nintendo raises Switch 2 console prices

“Game On” is The Fly’s weekly recap of the stories powering up or beating down video game stocks.

NEW RELEASES: This week’s most notable release is the Switch 2 (NTDOY) port of Bethesda’s (MSFT) “Indiana Jones and the Great Circle,” which first launched for PC and Xbox Series X/S in December 2024. The Switch 2 version is available May 12.

EBAY REJECTS GAMESTOP OFFER: eBay (EBAY) announced that, following a review with the support of its financial and legal advisors, the company’s board of directors has determined to reject GameStop’s (GME) unsolicited, non-binding acquisition proposal. “The Board, with the support of its independent advisors, has thoroughly reviewed your proposal and has determined to reject it,” eBay said. “We have concluded that your proposal is neither credible nor attractive.”

NINTENDO RESULTS: Last Friday, Nintendo reported year-over-year increases in FY26 earnings per share and revenue, with the company saying its Switch 2 console “got off to a good start” following its June 2025 launch. “The March release of Pokemon Pokopia was a factor in driving further hardware sales toward the end of the fiscal year, helping sales volume reach 19.86M units for the full term,” the company said. “Looking at software, Mario Kart World, which was released on the same day as the hardware, sold 14.7M units, including bundle sales, and Donkey Kong Bananza, released in July, sold 4.52M units. Pokemon Legends: Z-A – Nintendo Switch 2 Edition, released in October, sold 3.94M units of the packaged version. Unit sales of the downloadable versions of this title and other Nintendo Switch 2 Edition titles are counted in the sales of Nintendo Switch software. Nintendo Switch 2 software unit sales for the fiscal year reached 48.71M units.”

Looking ahead, Nintendo provided guidance for FY27 net sales and operating profit. However, the game giant decreased its FY27 outlook for Switch 2 unit sales to 16.5M from 19.86M. The guidance cut has given some investors pause, with the stock having fallen over 30% year-to-date. Amid such reported investor pressure, the company also announced Friday that it is raising prices for the Switch 2 in Japan, the U.S., Canada, and Europe, with the U.S. price of the console going from $449.99 to $499.99. Nintendo said such price revisions come “in light of changes in market conditions, and after considering the global business outlook.”

SONY RESULTS: Sony (SONY) also reported annual results last week, with FY25 earnings per share slipping year-over-year but revenue rising. Sales in the Game & Network Services segment were “essentially flat” year-over-year, though operating income increased 12%, as a decline PlayStation 5 hardware sales was offset by foreign exchange rates and higher revenue from network services and third-party software. The company also noted that PlayStation platform monthly active users in March increased 1% year-over-year to 125M accounts, a record high, while total play time in Q4 increased 1% as well.

Meanwhile, Sony reported a 120.1B yen, or roughly $765M, impairment loss due to underperformance of “Destiny” and “Marathon” studio Bungie during the last financial year. “In our studio business, earnings from Bungie’s title portfolio did not reach our expectations, so we downwardly revised our business plan and impaired the full amount of the fixed assets related to Bungie except for goodwill,” the company said, noting that player reception to “Marathon” is strong. “Going forward, we aim to improve the performance of the game by working to retain highly engaged core users through the introduction of additional content, further improvements in the gameplay experience and expansion of the user base,” Sony added. The Fly notes that Sony acquired Bungie in 2022 in a deal valued at $3.6B.

EA RESULTS: Additionally, Electronic Arts (EA) released its quarterly print last week, with EPS coming in above consensus estimates but net bookings missing Wall Street expectations. “Driven by our talented teams and disciplined execution, we delivered a record FY26, highlighted by the incredibly successful launch of our iconic Battlefield franchise,” said Andrew Wilson, CEO of Electronic Arts. “With the recent completion of a debt process that was met with strong investor demand and our ongoing constructive engagement with regulators, we look ahead to closing the transaction and the opportunities it will unlock.”

MORE VIDEO GAME NEWS:

• Sega (SGAMY) has canceled is so-called Super Game
• Microsoft said that Discord Nitro will include a starter edition of Xbox Game Pass
• Microsoft Gaming CEO Asha Sharma said the company will stop development of Copilot on console
• Capcom’s (CCOEY) “Pragmata” sold over 2M units in its first 16 days of availability