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Nintendo Co.’s decision to increase the price of its Switch console with an updated model set for October will test new waters for console makers, which have traditionally sought to juice sales by slashing prices instead of raising them.

The coronavirus outbreak reconfigured expectations across the gaming industry, with companies like Nintendo, Sony Group Corp. and Microsoft Corp. all struggling to satisfy runaway demand from players seeking entertainment and escape. The two Japanese gaming giants reported record profits, downloads and subscriber numbers over the past year.

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