Nintendo of Korea announced on the 29th that the recommended retail price for its next-generation console, the 'Switch 2,' will increase by 16.9% from ₩648k to ₩758,000, effective September 1. The move follows a global business review by Nintendo headquarters and reflects the impact of rising global component costs.

Nintendo previously raised prices for 'Switch 1' models on May 25. In the Korean market, the 'Switch OLED' is currently priced at ₩465,000, the standard 'Switch' at ₩410,000, and the 'Switch Lite' at ₩279800. Domestic models in Japan also saw price increases ranging from 8002 to ¥11002 depending on the model.

Prices for online subscription services will be revised effective July 1. The annual individual plan will increase from ₩19900 to ₩24,900, while the expansion pack will rise from ₩39900 to ₩49900. Following the hardware lineup, the company is now adjusting prices across its online services as well.

The September price adjustment for the 'Switch 2' will apply to global markets, including South Korea. In overseas markets, the price has been set at $499.99 in the U.S., 679.99 CAD in Canada, and 499.99 EUR in Europe. The domestic Japanese model will be priced at ¥59,980, an increase of ¥10k. Nintendo's decision to implement the change in September is interpreted as a measure to allow for the depletion of existing inventory produced at the previous cost.

The core reason behind the price hike is the volatility in the semiconductor market. Increased demand for data center construction has driven up semiconductor prices, leading to higher console manufacturing costs. It is estimated that the procurement cost for RAM, a component of the 'Switch 2,' has risen by approximately 41% compared to the initial development phase. Competitors such as Sony and Microsoft have also raised their console prices. As the rise in manufacturing costs directly impacts hardware profitability, analysts view Nintendo's move as a necessary adjustment of its pricing policy to align with cost fluctuations.