Switch 2 OLED and Lite console rumors reignite after Nintendo R&D expenses jump

Nintendo’s 2026 fiscal report came alongside news of a Switch 2 price increase. That announcement dominated headlines, but the summary also highlighted higher research and development costs. Substantially more than the previous year, some gamers believe a Switch 2 OLED or Lite is on the way.

Brief history of Nintendo R&D expenses

In FY 2026, R&D costs ballooned to 177.8 billion yen, a 23.7% jump from 144.6 billion yen in FY 2025. While Nintendo has gradually stretched its research budget over the years, it’s been rare to see such a sharp rise. Redditor AngieK22 noted that the last similar increase of 25% happened between 2023 and 2024. The Switch 2 then debuted in June 2025.

Looking further back, expenses grew from around 69.6 billion yen in 2019 to 84.1 billion yen in 2020. The Switch Lite appeared in September 2019, with the OLED model arriving in October 2021. Otherwise, in most years where new consoles didn’t surface, the differences were less significant.

Nintendo is always innovating, as its numerous patents demonstrate. Not all efforts are hardware-focused, even if consoles and controllers gain the most attention. Still, creating a variation of an existing handheld could require a considerable investment. As a result, hopeful fans are pointing to prior Switch 2 OLED and Lite leaks.

In January 2026, a datamine of the Nintendo Account portal site unearthed an “OSM” reference. “BEE” had already been spotted on existing hardware, but the unfamiliar identifier raised speculation. A streamlined Switch 2 Lite or upgraded Pro model was a popular guess.

The demand for a budget Switch 2

A March Bloomberg article then discussed lagging console sales. Takashi Mochizuki explained that the company would be quicker to introduce revisions if adoption slowed. Considering the Switch 2 price increase, a more affordable alternative may make sense. Former Nintendo marketers Kit & Krysta suggested a $350 MSRP on a podcast.

One less exciting possibility is a response to EU repair regulations. The gaming giant recently confirmed a tweak to its latest handheld to make battery replacement easier. However, whether this modification would noticeably inflate the R&D budget is debatable.