Semiconductors

Increasingly expensive memory chips, Nintendo increases Switch 2 price

Memories have become indispensable in servers for AI, and this is creating problems for console manufacturers

by Biagio Simonetta

8 May 2026

2' min read

Translated by AI

Versione italiana

2' min read

Translated by AI

Versione italiana

While chip costs are rising, and specific memory chips (once used more for gaming consoles) are now sought after for AI data centres, one of the biggest players in the gaming world is raising the price of its flagship console. It is Nintendo, which will increase the price of the Switch 2 after predicting a drop in sales.

The Japanese company expects to sell 16.5 million Switch 2s in the fiscal year ending March 2027, down from the 19.86 million units sold in the year just ended. The released estimates fell short of analysts' expectations on both the sales and profit fronts.

So here are the increases: in the US, the price of the Switch 2 will rise from $449.99 to $499.99 from 1 September. In Japan, the price will rise from 49,980 to 59,980 yen from 25 May. Increases are also expected in Europe and Canada.

Nintendo linked the increases to changes in market conditions and the global economic environment. Especially weighing in are memory price increases, which have become more expensive due to the strong demand generated by the global race for AI data centres. The company indicated an impact of around 100 billion yen due to higher component costs and tariff measures.

Sony had also raised the price of the PlayStation 5 in recent months. Meanwhile, Nintendo's share price lost almost 50 per cent from the highs reached last August.

For the current fiscal year, the Japanese giant father of Super Mario estimates revenues of ¥2,050 billion, down 11.4% year-on-year and below market expectations. Expected net income is 310 billion yen, also below analysts' estimates.

According to several analysts, the most relevant fact is the expected slowdown in hardware sales already in the second year of the console's life, a phase in which platforms normally experience growth.

Despite the more difficult environment, it must be said that Nintendo continues to benefit from the strength of its intellectual properties. 'The Super Mario Galaxy Movie' grossed almost $900 million worldwide, while the 'Pokémon Pokopia' video game became one of the Switch 2's best-selling titles. New chapters in the 'Splatoon' and 'Starfox' series are also expected in the coming months, as well as two Pokémon games expected in 2027. A rather turbulent period, in short. Where staying afloat presents several difficulties.