Nintendo faces its biggest pricing challenge since launch. President Shuntaro Furukawa addressed surging RAM costs and tariffs in a rare Kyoto Shimbun interview, confirming the company monitors both threats daily as AI data centers devour global memory supply. Switch 2’s 12GB LPDDR5X RAM jumped 41% in one quarter alone.
Launched June 2025 at $449.99, Switch 2 escaped initial price hikes affecting original Switch models. Furukawa credits supplier contracts and inventory buffers for current stability, but warns ‘we must monitor the situation closely.’ Direct price increase questions received the classic corporate dodge: ‘I cannot comment on hypotheticals.’
The RAM Crisis Explained
AI giants like Nvidia, AMD, and OpenAI locked up DRAM supply through exclusive deals with Samsung and SK Hynix. Consumer electronics ranked second priority:
- Switch 2 RAM: 12GB LPDDR5X up 41% quarterly
- Storage: 256GB NAND flash rose 8%
- Express SD Cards: 256GB models hit $89.99
- Global Impact: PS6, next Xbox also affected
Micron discontinued consumer PC memory lines entirely, redirecting capacity to enterprise servers. Nintendo pays premium for remaining consumer-grade modules originally budgeted at launch pricing.
Tariff Threats Compound Costs
Furukawa confirmed Nintendo’s tariff policy: ‘recognize as cost and pass on to prices as much as possible.’ 2025 saw $60+ million tariff hits already:
| Product | 2025 Price Increase |
|---|---|
| Switch Standard | $300 → $340 |
| Switch OLED | $349 → $399 |
| Switch Lite | $199 → $229 |
| Joy-Con (Switch 2) | $90 → $95 |
| Pro Controller | $70 → $80+ |
Switch 2 holds $449.99 for now, but analysts predict $499.99 minimum if RAM crisis persists through Q2 2026. Canada already sells base model at CA$629.99 ($450 USD equivalent).
Nintendo’s Financial Strategy
Furukawa outlined dual defense against cost pressures:
- Inventory Buffer: Six months production secured at 2025 pricing
- Volume Discounts: 10.36M units sold (Nov 2025) strengthens supplier negotiations
- Japan Lottery: High demand rationing maintains scarcity pricing
- Game Revenue: Mario Kart World, Metroid Prime 4 offset hardware margins
Target remains 19M units by March 31, 2026 despite headwinds. Holiday 2025 hit 70% of goal already.
Consumer Impact Timeline
- Q1 2026 (Now): Current inventory holds $449.99
- Q2 2026 (April-June): Buffers deplete, price adjustment likely
- Q3 2026 (Summer): Full market pricing emerges
- Japan: Lottery continues through March
Competitive Context
RAM crisis hits entire industry:
- PS5 Slim: $499 → rumored $549
- Xbox Series S: $299 → $349 potential
- PC Builders: 32GB DDR5 kits doubled
Nintendo’s hybrid positioning softens blow versus pure stationary competitors. Game-Key Card format and Joy-Con 2 mouse features maintain value proposition even at premium pricing.
Upcoming Games Hedge Bets
Furukawa teased 2026 lineup bolstering hardware sales:
- Mario Tennis Fever: February 2026
- Yoshi and the Mysterious Book: Summer 2026
- Zelda: Hyrule Warriors successor hinted
- Third-party: FFVII Remake success continues
FAQs
Will Switch 2 price increase soon?
Furukawa calls it hypothetical but confirms close monitoring. Q2 2026 most likely timing as inventory depletes.
How much could price rise?
$499.99 minimum predicted. Canada equivalent already CA$629.99 suggesting global $500 floor.
Why is RAM so expensive suddenly?
AI data centers consumed supply. Nvidia/OpenAI deals with Samsung/SK Hynix prioritize enterprise over consumer gaming.
Does Japan get different pricing?
Lottery system maintains artificial scarcity. Official pricing unchanged through March 2026.
Are games getting more expensive too?
Mario Kart World launched $79.99. First-party pricing trending upward alongside hardware.
Game Pass equivalent coming?
Nintendo Switch Online + Expansion Pack absorbs older titles. No day-one first-party equivalent exists.
Should I buy Switch 2 now?
Current $449.99 inventory offers final pre-hike pricing. Holiday bundles maximize value.
Conclusion
Nintendo confronts gravest hardware economics since Wii U. RAM crisis plus tariffs test hybrid model’s pricing invincibility, but 10M+ sales and exclusive software provide cushion. Furukawa’s measured response buys time while signaling inevitable adjustment. Gamers face stark choice: secure current pricing or embrace $500 hybrid future. Switch 2’s 2026 trajectory hinges on memory market stabilization – AI’s unintended console casualty.