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.