Nintendo has confirmed it will not raise the price of its Switch 2 console in the near term, despite surging memory component prices driven by AI demand. President Shuntaro Furukawa stated during the company's latest earnings Q&A that current measures have shielded profitability so far. The firm prioritizes expanding the console's user base over short-term financial pressures.
In its third-quarter fiscal year 2026 earnings report, released on February 6, 2026, Nintendo addressed investor concerns over escalating memory prices affecting the video game industry. The rise, fueled by demand from AI data centers, has led to shortages and delays in components like RAM and graphics cards. Nintendo's president, Shuntaro Furukawa, emphasized the company's proactive strategy.
"We are working to secure stable supplies of memory components by holding discussions from a long-term perspective with our business partners," Furukawa said. "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."
Furukawa noted that the price surge has exceeded expectations but that Nintendo has stockpiled inventory and negotiated long-term deals to buffer the effects. No decision has been made to increase the Switch 2's $450 price tag, with any potential changes to be evaluated based on the platform's installed base, sales trends, and broader market conditions.
Looking ahead, Furukawa warned of potential profitability pressures if the trend persists into the next fiscal year and beyond. However, he stressed a focus on long-term growth: "The second and third years for Nintendo Switch 2 are very important, and if we can expand the hardware installed base, we can use that as a basis to greatly expand software sales."
The company aims to avoid selling hardware at a loss on a global scale, prioritizing economies of scale through mass production. Higher-than-usual inventory levels were attributed to preparations for last year's holiday demand, not specifically for memory issues. This measured approach reflects Nintendo's caution amid unpredictable factors like AI market shifts and economic uncertainties.
