Nintendo Switch 2 Price May Be Impacted by RAM Crisis

Key Takeaways

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Nintendo is closely monitoring RAM market volatility to protect profit margins for the Nintendo Switch 2.
The Nintendo Switch 2 is expected to maintain its current price point at launch, but a lighter, more affordable version named the Switch 2 Lite may be in development.
As of now, there are no indications that Nintendo intends to increase the Switch 2’s price post-launch.
The rise in component costs and tariffs could potentially affect the production and prices of other upcoming consoles such as the PlayStation 6 and Xbox Series X/S successor, and Valves Steam Machine.

Nintendo Prepares for RAM Market Volatility to Protect Nintendo Switch 2 Profit Margins

Nintendo President Shuntaro Furukawa has stated that the company is closely monitoring RAM component prices to safeguard profit margins for the Nintendo Switch 2. Despite anticipated price increases for RAM, Furukawa assured investors that Nintendo has proactively prepared for these market conditions. Furukawa explained that hardware profitability depends on various factors, including component demand, cost reduction through mass production, and exchange rate fluctuations. To mitigate potential risks, he stated, “We aim to secure medium and long-term component demand… We seek suppliers according to our medium and long-term plans, but the current memory market is highly volatile. While there’s no immediate impact on revenues, it’s something we are closely monitoring.”

The rising cost of components can be attributed to increased demand for semiconductors, DRAM, drives, and other computer and server parts, largely driven by the expansion of AI technologies. This surge in demand could potentially lead to higher prices for upcoming consoles such as the PlayStation 6 and the successor to the Xbox Series X/S, and may even cause delays in production due to RAM shortages and increased costs. The situation could also affect Valve’s upcoming Steam Machine, with rumors suggesting a price range of $800 to $900, depending on the choice of a 512GB or 2TB storage option. Furukawa declined to speculate on whether these increased costs might force Nintendo to raise the price of the Switch 2. He further noted that the impact of existing US tariffs on Japan had already been factored into their financial reports. Here’s what is currently known about Nintendo’s plans: 1. The Nintendo Switch 2 is expected to maintain its current price point at launch. 2. A lighter, more affordable version of the Switch 2, potentially named the Switch 2 Lite, may be in development, targeting first-time console buyers.

Navigating Nintendo Switch 2 Launch Amidst Rising Component Costs and Tariffs

3. As of now, there are no indications that Nintendo intends to increase the Switch 2’s price post-launch, a strategy that has been adopted by Sony and Microsoft. In other news, Mario Kart World remains in second place in the UK charts, while EA SPORTS FC 26 has reclaimed the top spot. The UK charts data for the new year reflects a relatively quiet period in game releases. Pac-Man will join the character roster of Sonic Racing: Cross-Worlds later this week. Furthermore, details have emerged concerning the two graphics and performance modes available in GRID Legends: Deluxe Edition on the Switch 2. Finally, Atlus has launched a dedicated website to commemorate the Persona 30th Anniversary. Nintendo is navigating a complex landscape of rising component costs and tariffs as it prepares to launch the Nintendo Switch 2 and its accompanying games.

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