Nintendo Responds to Rising Memory Costs for Switch 2

Nintendo President Shuntaro Furukawa has addressed growing speculation regarding a potential price increase for the Switch 2 console. The concerns stem from a global surge in memory costs, driven largely by the artificial intelligence sector's demand for high-performance chips. Furukawa clarified that Nintendo's current financial performance will not be immediately affected by these rising component prices due to the company's strategic inventory management and existing supplier contracts. However, he noted that the company must continue to monitor the market situation closely.

Regarding future pricing for consumers, Furukawa offered a non-committal response, stating he could not comment on hypothetical scenarios. The Nintendo president also provided updates on the console's software library, confirming the development of new entries in popular franchises as well as entirely new titles. This follows a successful launch period for the Switch 2, which has seen strong demand despite some supply shortages and criticism regarding specific media formats.

The potential for a Switch 2 price hike is linked to broader economic trends in the technology sector. Global memory prices are currently on an upward trajectory, primarily because powerful AI chips have high memory requirements. Reports indicate that major technology companies such as Nvidia, Advanced Micro Devices, and Google are prioritized for component supply, creating a shortage for other sectors. It has been reported that there will not be enough memory to meet worldwide demand in 2026.

Memory vendor Micron took significant steps in December to address this supply crunch. The company announced it would discontinue a portion of its business focused on providing memory for consumer PC builders. This move was made to conserve supply for the more lucrative AI chip and server markets. Consequently, the cost of memory components is rising across the board, prompting questions about how console manufacturers like Nintendo will absorb these increased costs.

In response to these market shifts, Shuntaro Furukawa provided insight into Nintendo's defensive financial measures. He explained that the rising memory prices will have no immediate impact on the company's performance. This buffer is provided by Nintendo's substantial inventory reserves and long-term contracts established with its suppliers. These agreements likely lock in component prices for a set period, shielding the company from short-term volatility in the commodities market.

Despite this current insulation, Furukawa acknowledged that the situation requires vigilance. He stated, "we must monitor the situation closely," signaling that the company is aware of the potential for long-term impacts if memory prices continue to climb or if supply constraints worsen. When pressed on whether these costs would be passed on to consumers in the form of a console price increase, Furukawa offered a standard corporate deflection, saying, "I cannot comment on hypotheticals."

Beyond the hardware economics, Furukawa provided updates on the Switch 2 software roadmap. He confirmed that Nintendo is actively developing titles for the platform, encompassing both new entries in beloved franchises and completely new intellectual properties. The console has already seen successful launches such as Mario Kart World and Kirby Air Riders, as well as third-party ports like Final Fantasy VII Remake, demonstrating the system's capability to handle demanding games.

Looking ahead to 2026, specific first-party titles have been confirmed. Mario Tennis Fever is scheduled for release in February, with Yoshi and the Mysterious Book slated for later in the year. Fans are also eagerly awaiting a mainline entry in The Legend of Zelda series. While not yet announced, series producer Eiji Aonuma recently hinted that the next installment might draw elements from Hyrule Warriors: Age of Imprisonment. Furukawa's comments suggest that Nintendo will continue to announce additional games in the near future to maintain momentum for the console.

The Switch 2 launched in June and has established itself as a capable gaming machine. It offers significant visual, performance, and storage improvements over its predecessor. The console has successfully run more demanding games than previously possible on Nintendo hardware, bridging the gap with other modern consoles. However, the launch was not without challenges. There were criticisms regarding the use of Game-Key Card mediums, which rely on downloads, and significant supply shortages.

In Japan, demand was so high that Nintendo had to implement a lottery system for most of 2025 to distribute consoles fairly. The hardware also introduced new input methods, including GameChat, GameShare, and the new Joy-Con's ability to function like a mouse. As Nintendo prepares for its second year with the console, the focus remains on securing component supply and expanding the library of exclusive titles that utilize these new features.