Nintendo Admits Rising Memory Prices Will Lead To Problems With Switch 2 Profitability

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Nintendo Closely Monitoring The Memory Situation For Now!

Story Highlight
  • Nintendo President Shuntao Furukawa states that ongoing memory pricing has not had any immediate impact on the Switch 2.
  • He notes that the situation is very volatile and could harm profits if it remains as such.
  • The President did not comment on potential price hikes, but analysts believe console prices will soon go up from all three giants.

Toward the end of 2025, Nintendo noted that it did not plan on raising Switch 2 prices despite the ongoing memory crisis around the globe. Soon after, reports suggested that the company was paying up to 41% more for its memory than before.

When asked to comment on the profitability of the Switch 2 amid ongoing price hikes and market conditions, Nintendo president Shuntaro Furukawa stated that things could change for the worse in the long run.

Why it matters: The Switch 2 already costs close to $500, so price hikes would harm its perception among the consumers.

Nintendo Switch 2
The Switch 2 Will Celebrate Its First Anniversary Soon

Speaking to Kyoto Shimbun, the Nintendo President explained that profitability depends on various factors. He described that the current demand for memory, mainly due to AI investments, has not had an immediate impact on the company’s earnings.

However, he noted that the limited supply and rising costs could harm profitability if they remain volatile. Shuntaro Furukawa was also asked to comment on a potential price hike, but he avoided commenting on the matter.

For now, the company is doing all it can to monitor the situation. As was the case with the US tariffs, Nintendo is attempting to find the right balance between costs and prices so as to maintain profitability and please customers.

The current memory market is very volatile. There is no immediate impact on earnings, but it is something we must monitor closely.

-Shuntaro Furukawa

Nintendo Switch 2
The Switch 2 Could Become More Expensive In The Future

Although the Nintendo President did not address a potential price hike, analysts have pointed to rising console prices in the future.

The likes of PlayStation and Xbox have also increased prices recently, and the ongoing DRAM crisis means that Nintendo might be considering a similar scenario. Of course, this also means that any future console variants, like an OLED or Lite model, might not arrive as quickly as many were hoping for.

What do you think about Nintendo’s concerns about the ongoing DRAM supply and pricing issues? Let’s discuss in the comments and on the Tech4Gamers Forums.

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