Nintendo closely monitors the evolution of DRAM memory prices on the global market. President Shuntaro Furukawa stated that the company is carefully evaluating the possibility of adjusting the price of Switch 2 if costs remain high for a prolonged period. High demand for chips for artificial intelligence data centers puts pressure on available supply for consumer products.
The console, launched in June 2025, has maintained a stable price since sales began. Executivos from the company state that there are no immediate plans to change the value suggested to the consumer. The decision will depend on factors such as profitability, sales trends and market environment.
Industry analysts note that prices for LPDDR5X modules, used in the Switch 2, have increased by up to 41% in recent quarters. Esse movement directly affects the production costs of the device.
Official position of Nintendo
Shuntaro Furukawa participated in a conference call with investors and answered questions about component costs. Ele highlighted that the company maintains long-term negotiations with suppliers to ensure a stable supply of chips.
The executive mentioned that the current impact remains controlled in the fourth fiscal quarter. However, the persistence of high DRAM prices could put pressure on profitability from the next fiscal year, which starts in April 2026.
Nintendo sold more than 10 million units of the Switch 2 in the first few months after launch. Commercial performance reinforces the console’s position in the market, but rising costs require constant monitoring.
Crisis in the memory market
DRAM prices have risen significantly since the second half of 2025. The demand for high-performance memories in artificial intelligence servers explains the main driver of this increase.
Manufacturers such as Micron and Samsung allocate a large part of their production to contracts with technology companies. Esse diversion reduces the supply available for consumer devices, including video game consoles.
- 12 GB LPDDR5X modules registered an increase of 41% in the last quarter.
- NAND flash memories showed an increase of around 8%.
- Projections indicate that the upward trend will continue throughout 2026.
- Analysts estimate an average increase of up to 120% in DRAM prices next year.
Effects on console production
The Switch 2 uses components that are sensitive to changes in memory prices. Nintendo adopted an inventory strategy and fixed contracts to minimize initial impacts.
Experts point out that the profit margin per unit of the console is not wide. Absorver significant increases in costs can compromise profitability without being passed on to the end consumer.
Other electronics manufacturers face a similar situation. Fabricantes of smartphones and personal computers have already adjusted shipping projections for 2026 due to high chip prices.
The Japanese company has seen a drop in its shares since the end of 2025. Investidores react to news about rising costs and possible impacts on operating margins.
Industry analyst projections
Financial institutions are following the scenario closely. Recent Relatórios indicate that Nintendo may need to raise the price of Switch 2 by up to 15% when current stocks are depleted.
Bloomberg Intelligence estimates that the transfer will depend on the end of fixed price contracts. Analistas and Citigroup project an average increase of 90% to 120% in memory components throughout the year.
- Pelham Smithers assesses that the cost of producing consoles faces a challenging scenario.
- Niko Partners foresees a global adjustment in the price of the device in 2026.
- TrendForce points to a continued DRAM shortage until at least 2027.
- Morgan Stanley reviewed recommendations for manufacturers affected by the crisis.
Sales and commercial performance
The Switch 2 has achieved a significant number of units sold since its launch. The console benefited from wide initial availability and an attractive game catalog.
Nintendo has revised its annual sales projections upward. The current target points to 19 million units by the end of the fiscal year in March 2026.
Top-tier games drive hardware sales. Títulos exclusives maintain a constant pace of adoption by consumers.
Supply strategy
The company maintains ongoing dialogues with component suppliers. Long-term Acordos help guarantee volumes needed for production.
Executives highlight that current planning covers the current quarter without major interruptions. The concern focuses on the subsequent period, when new contracts will come into force.
Nintendo takes a cautious approach to price adjustments. The company considers multiple factors before making any decision that affects the end consumer.
The global console market is following the situation. Concorrentes also deal with similar pressures on production costs.