No Switch 2 price hike on immediate horizon, RAM shortage didn't impact Nintendo Q3 profits

Nintendo has no short- or medium-term plans to raise prices on the Switch 2 console, despite the ongoing component shortages that threaten to drive up production costs.

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AI datacenters are eating up all the RAM, leading to component shortages for consumer devices like video game consoles. The shortages have driven up costs; new reports indicate that Nintendo is now paying up to 40% more for chips like RAM and storage for its Switch and Switch 2 consoles. Nintendo has already raised the price of devices in its previous Switch generation--this usually happens the other way around, with costs driving down over time--and analysts believe a Switch 2 price hike is also coming in 2026.

Yet if this price hike is coming, Nintendo isn't ready to talk about it. In a recent Q&A with investors, Nintendo president Shuntaro Furukawa says that the shortages haven't impacted or lowered Switch 2 sales profitability through Q3'26, a period which the company made nearly $1 billion in operating profit.

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Once the Switch 2's profitability is affected to a higher degree, though, Nintendo might take a closer look and possibly raise prices.

"We do not disclose details regarding individual components, but we can say that we are working to secure stable supplies of memory components by holding discussions from a long-term perspective with our business partners.

"As a result, the recent rise in memory prices did not have a significant impact on hardware profitability in the third quarter. In addition, we do not expect any significant impact in the fourth quarter.

"We expect that the recent rise in memory prices will not greatly impact the financial results for the current fiscal year. Furthermore, due to our inventory on hand, together with hardware currently in production, we do not anticipate an immediate impact in the next fiscal year.

"However, if this rise in component prices lasts longer than expected and runs through the next fiscal year and beyond, it may put pressure on profitability. If the situation deteriorates significantly, we will carefully assess market trends and respond.

"As for any future change in the price of Nintendo Switch 2 hardware, no decision has been made at this time. Any decision to change the price will be determined comprehensively, taking into consideration not only profitability, but also other factors like the platform's installed base, sales trends, and the market environment."