Nintendo president Shuntaro Furukawa has stated that the company is closely watching rising RAM prices and tariffs, which could potentially affect the Nintendo Switch 2's pricing. In a recent interview, Furukawa emphasized that there is no immediate impact on earnings but the situation requires ongoing attention. The executive outlined Nintendo's strategy to mitigate these economic pressures through long-term planning.
In an interview with Kyoto Shimbun, translated by Video Games Chronicle, Nintendo president Shuntaro Furukawa addressed concerns over the volatile memory market driven by AI data centers' demand for large amounts of RAM. "We procure from suppliers based on our medium- to long-term business plans, but the current memory market is very volatile… There is no immediate impact on earnings, but it is something we must monitor closely," Furukawa said.
Furukawa explained that hardware profitability for the Switch 2 depends on factors such as component procurement, cost reductions via mass production, exchange rates, and tariffs. He noted that while costs for various materials are rising, Nintendo anticipates some reductions through ongoing production efforts. Previously, in November, Furukawa assured investors that Switch 2 pricing remained stable unless disrupted by further trade issues, such as a potential escalation in tariffs.
The company has already felt the pinch from tariffs, which negatively impacted its finances by tens of millions in the first half of last year. In response, Nintendo raised prices for its original Switch models in August 2025: the standard model from $299 to $339, the OLED version from $349 to $399, and the Lite from $199 to $229. Furukawa reiterated Nintendo's policy on tariffs: "While it's difficult to accurately gauge the future impact, our basic policy is to recognize tariffs as a cost and pass them on to prices as much as possible, not just in the US."
Nintendo is advancing component procurement over the medium to long term to reduce the effects of RAM shortages and fluctuating tariffs. Consoles like the Switch 2 operate on thin profit margins, making them vulnerable to global supply chain disruptions. Furukawa described this as a crucial period for promoting new hardware while maintaining platform momentum, underscoring the company's careful navigation of these challenges.
