Nintendo is working to "secure stable supplies of memory components" to avoid hardware price rises.

Have you ever walked into a store to buy a new console and felt like you needed to sell a kidney just to afford the thing?

It is a feeling we are all getting used to lately. The world is kind of a mess. and between "confusion" over international politics and the "explosive" cost of living. Gaming is starting to feel like a luxury we can barely hold onto. But here is the kicker. Nintendo—yes. The Mario company is actively fighting to keep your wallet safe. or at least. They are trying to. In a recent earnings call that dropped like a bombshell today. Nintendo President Shuntaro Furukawa laid it all out. They are scrambling to "secure stable supplies of memory components" to stop the price of the Switch 2 from skyrocketing. But is it going to be enough? Let's dive deep into the economics of this mess and see what it means for you and your backlog.

The Silent War for Memory Chips

You might not think about the little black chips inside your plastic box. But they are currently the most valuable resource on the planet, next to maybe fresh water. International trade is currently in a stranglehold because everyone wants memory. AI data centers. electric cars. And yes, your gaming consoles.

The Earnings Call Revelation

In the Q&A session published today. Furukawa was surprisingly honest. He admitted that memory prices are rising "at a pace that exceeds our expectations." That is corporate speak for "we are freaking out a little bit."

Usually. Companies like Nintendo have predictable contracts. They buy parts years in advance to lock in prices. But the current macroeconomic situation is so volatile that those contracts are being tested. Furukawa noted that so far. This inflation hasn't had "a significant impact on hardware profitability in the third quarter," preventing an immediate disaster. They also don't expect the current quarter (Q4) to be hit too hard.

But what happens after that?

The Threat of Price Hikes

This is where it gets scary. Furukawa didn't rule out future price hikes. He said that if this trend continues. It "may put pressure on profitability."

"Any decision to change the price will be determined comprehensively. Taking into consideration not only profitability. but also other factors like the platform’s installed base. sales trends. and the market environment."

Translation. If their costs go up too much due to supply chain issues or economic sanctions affecting material costs. They might have to pass that bill on to you.

Geopolitics and Your Game Console

It sounds wild. But geopolitical tensions are directly affecting whether you can play Mario Kart cheaply. The global labor market is tight. and international conflicts in key manufacturing regions have slowed down production.

The Valve Warning

Nintendo isn't the only one feeling the heat. Valve recently had to delay its own new hardware launch. The reason. You guessed it. "Ongoing memory and storage shortages." When a giant like Valve steps back. You know the economic repercussions are real.

The microeconomics of this are brutal. If the supply of memory stays low while demand from AI companies stays high. Prices will only go one direction. Up. Nintendo is trying to use its massive cash reserves to buy up stock now—basically hoarding memory chips like a squirrel with nuts—to insulate you from these market shocks.

Switch 2: The Success Story So Far

Despite the doom and gloom about parts. The Switch 2 is actually crushing it. Since its launch in June 2025. The console has shifted a massive 17.37 million units. That is huge growth for a new platform. especially in this economy.

In the last three months alone (ending December 31. 2025). They sold seven million units. That is a lot of happy gamers.

The Japan Phenomenon

Interestingly. Furukawa pointed out that Japan is leading the charge. Sales there trended "better than expectations." Why. Two words. Pokémon and Kirby.

Pokémon Legends: Z-A – Nintendo Switch 2 Edition
Kirby Air Riders

These titles created a massive incentive for Japanese players to upgrade.

"We believe that users in Japan saw these titles as an opportunity to transition to Switch 2 at a relatively higher rate compared to Nintendo Switch owners outside of Japan."

This shows the power of software. Even when economic growth is slow globally. Top-tier games can force wallets open.

The Strategy: Keeping the Old Guard Alive

Here is the really smart part of Nintendo's plan. They aren't abandoning the old Switch just yet. They know that economic growth comes from keeping users engaged. not just forcing them to buy new boxes immediately.

Furukawa talked about big updates for Animal Crossing: New Horizons and Splatoon 3. These games are years old. But they have massive player bases.

The Bridge to the Future

By releasing content for these older games on the new hardware (or cross-gen updates). They are maintaining "touchpoints."

"It is necessary to regularly release new titles to increase the installed base of new hardware... In addition. We believe it is very important to maintain touchpoints with consumers who are active on our gaming systems as the transition from Switch to Switch 2 unfolds."

It is a soft nudging strategy. You play the Splatoon 3 update on your old Switch. You see how sluggish it is compared to your friend's Switch 2, and eventually. You upgrade. It keeps the labor market of developers busy and ensures a steady stream of revenue even if hardware sales dip due to shortages.

Financial Deep Dive: The Numbers

Let's look at the cold, hard cash. because that is what drives foreign investment and keeps the lights on.

Nintendo Financial Highlights (9 Months Ending Dec 31, 2025)

Metric	Amount (JPY)	Amount (USD)
Net Sales	¥1.9 trillion	~$12.3 billion
Operating Profit	¥300.4 billion	~$1.9 billion
Switch 2 Units Sold (Total)	17.37 million	-
Switch 2 Units Sold (Q3)	7.0 million	-

These numbers are solid. generating huge capital that Nintendo can use to secure those precious memory chips. It is a cycle of growth.

Why Memory Prices Are the Villain

To understand why this is happening. We need to look at macroeconomics. The global economy is shifting. International trade routes are being redrawn due to geopolitical tensions.

Supply Chains: They are fragile. A disruption in one country (like a factory strike or a trade embargo) causes ripples everywhere.
Economic Sanctions: Restrictions on tech exports to certain countries have messed up the global flow of silicon.
Competition: It is not just consoles. Electric vehicles use massive amounts of memory. Your fridge probably uses memory. The demand is infinite. But the supply is finite.

Nintendo is fighting a battle against the entire global market to keep its console under $400. It is frankly impressive that they held the line this long.

What This Means for You

If you haven't bought a Switch 2 yet. You might want to consider it sooner rather than later. If the economic repercussions of the memory shortage get worse. Nintendo might not have a choice.

Furukawa said they will examine "various factors" if profitability drops. That is the CEO's code for "we might raise the price."

Don't Panic: They have stock for now.
Watch the Market: If you see headlines about "DRAM shortages" or "NAND flash price spikes," take it as a warning.
Value: Even at a higher price. The library is shaping up to be incredible.

Main Points Recap

The Problem: Memory component prices are rising faster than Nintendo expected due to global supply chain issues.
The Defense: Nintendo is aggressively working to "secure stable supplies" to avoid raising hardware prices.
The Success: Switch 2 has sold 17.37 million units since June 2025. fueled by hits like Pokémon Legends: Z-A.
The Strategy: Using updates for Animal Crossing and Splatoon to bridge the gap between generations.
The Warning: Future price hikes aren't ruled out if the economic impact of component shortages continues.
The Context: Competitors like Valve are already delaying hardware because of this exact issue.

Frequently Asked Questions (FAQ)

Will the Switch 2 price go up this year?

It is unlikely for Q4 (now). But if memory prices keep exploding. 2026 might see a price adjustment. Furukawa said they are watching the situation closely.

Why is memory so expensive right now?

It is a mix of high demand from AI sectors. geopolitical tensions disrupting trade. and general inflation in the tech labor market.

Should I buy a Switch 2 now or wait?

If you have the cash. Buying now secures you the current price. Waiting carries the risk of a price hike or stock shortages like we saw with the PS5 years ago.

What games are driving sales?

In Japan specifically. Pokémon Legends: Z-A and Kirby Air Riders are the main drivers. encouraging people to upgrade.

Is Nintendo doomed?

Far from it. With ¥1.9 trillion in sales. They have the economic growth and cash reserves to weather this storm better than almost anyone else.

Conclusion: The Battle for Affordability

Nintendo is playing a dangerous game of economics. They are trying to shield us. the players. from the harsh reality of global inflation and supply chain chaos. It is a noble effort. But even Mario can't jump over every hurdle if the international politics of trade keep putting up walls.

For now, the Switch 2 remains stable. if threatened. piece of hardware. Let's hope Furukawa's team can secure those memory chips before the economic impact forces their hand. "Contact us via the web," if you manage to snag a console before the potential price hike.

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Libellés:

Nintendo Switch 2, Shuntaro Furukawa, memory shortage, hardware prices, international conflicts, geopolitical tensions, economics, economic impact, international politics, economic repercussions, labor market, international trade, economic sanctions, macroeconomics, microeconomics, economic growth, foreign investment, supply chains, growth.