Nintendo Switch 2 May Face Price Hike as Memory Costs Surge

Rising memory chip prices could force Nintendo to raise the price of its Switch 2 console, potentially undercutting early momentum from strong US holiday sales, according to Bloomberg. The concern comes as the company prepares to report third-quarter earnings next week, with investors increasingly focused on whether higher component costs will outweigh expected revenue gains.

The Switch 2, launched in June 2025 and described as the fastest-selling game console to date, had fueled expectations of a share-price recovery. Instead, Nintendo’s stock has fallen more than 30% from its August 2025 high and posted its worst monthly performance since 2008 in December, as investors reacted to a worsening global memory supply crunch.

Pelham Smithers, a UK-based gaming-sector equity analyst, stated Nintendo faces “an absolute horror show on the cost of building a console” unless memory prices ease. 

The shortage is being driven by heavy investment in artificial intelligence (AI) hardware, which is diverting chipmaking capacity away from consumer electronics. The impact is already visible elsewhere, with smartphone makers cutting 2026 shipment forecasts, according to market researchers.

Nintendo Switch 2 Price Hike Risk Linked to Memory Shortage

TrendForce data shows prices for DRAM and flash storage used in Nintendo devices rose sharply in the December 2025 quarter, with further increases expected. 

Meanwhile, Citigroup analysts project that average DRAM prices could jump 120% in 2026, while NAND prices may rise 90%. Bloomberg Intelligence analyst Nathan Naidu estimates Nintendo may need to raise the Switch 2’s US price by about 15% once stockpiles and fixed-price contracts run out.

Priced at $450 USD, the Switch 2 is already Nintendo’s most expensive console. Analysts warn that pricing beyond $500 could hurt demand. While rivals, including Sony, are also affected, Nintendo is more exposed because the Switch 2 is early in its lifecycle and is believed to be sold near cost, limiting its ability to absorb higher memory prices.