adminNintendo is working to secure a stable memory component supply as prices rise across the technology sector. The company says the increases have not significantly affected hardware profitability so far, but a prolonged shortage could create pressure and influence future pricing decisions.
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Nintendo memory component supply and possible price changes
During an earnings call Q&A, Nintendo president Shuntaro Furukawa said memory prices were climbing faster than the company had anticipated. Even so, the increases had not had a significant effect on hardware profitability in the third quarter, and Nintendo did not expect them to affect its fourth-quarter results.
Furukawa did not rule out the possibility that costs could become more challenging if the trend continues. He said any decision to change hardware prices would take several considerations into account, including profitability, the platform’s installed base, sales trends, and overall market conditions.
If memory prices remain elevated for longer than expected, Nintendo may need to assess how to respond. For consumers, this means a price increase is not confirmed; the company has said it would weigh multiple factors before making such a decision. Memory and storage shortages have also affected other hardware makers: Valve recently delayed the launch timing of new hardware amid ongoing supply constraints.
Switch 2 sales trends in Japan
Furukawa also discussed Switch 2 sales in Japan, where hardware sales performed better than Nintendo had expected after the holiday period. He linked the trend in part to Pokémon Legends: Z-A – Nintendo Switch 2 Edition and Kirby Air Riders.
Nintendo believes Japanese Switch owners moved to Switch 2 at a relatively higher rate than owners in other regions. Strong game releases can give players a reason to consider upgrading, although sales patterns may differ between markets.
Keeping Switch players engaged during the transition
Nintendo is also using updates to popular Switch games, including Animal Crossing: New Horizons and Splatoon 3, to maintain interest in its existing systems. Furukawa said regularly releasing new games is important for growing the installed base of new hardware, while continuing to engage current players can support the transition from Switch to Switch 2 over the coming years.
Updates to games with large audiences can keep players active on Switch while they wait for new releases that encourage them to move to the newer console. This approach allows Nintendo to support its existing player base as well as build interest in Switch 2.
Financial results and Switch 2 unit sales
For the nine months ending December 31, 2025, Nintendo reported net sales of ¥1.9 trillion ($12.3 billion) and operating profit of ¥300.4 billion ($1.9 billion). Since its launch in June 2025, Switch 2 had sold 17.37 million units. It sold seven million units in the three months ending December 31, 2025.
Overall, Nintendo’s memory component supply remains an important factor to watch, but the company has not indicated that a hardware price change is inevitable. Its next steps will depend on how long higher memory costs persist, alongside sales and market conditions.
