Last November, Nintendo emphasized that, despite rising costs, there were no plans to increase the price of the Switch 2 for the time being, but the RAM crisis recently also hit the latest console more heavily. In an interview with the Japanese newspaper Kyoto Shimbun Nintendo President Shuntaro Furukawa was now asked what challenges arise from the Switch 2’s lower profit margin compared to the original Switch, as VGC reports.
“The profitability of hardware depends on factors such as the procurement conditions for components, cost reductions through mass production and the impact of exchange rates and tariffs,” Furukawa explained. “It is difficult to generalize. Fundamentally, we want to address this issue by improving component sourcing in the medium to long term.”
Furukawa also noted that the rapidly rising cost of RAM could become a problem if it continues. “We procure from our suppliers based on our medium to long-term business plans, but the current storage market is very volatile,” he explained. “There is no immediate impact on profits, but we will have to monitor developments closely.”
Nintendo is watching RAM prices and tariffs “very closely”
When asked whether the company might increase its prices depending on future procurement costs, Furukawa said that this was hypothetical and he could not comment on it. Later in the interview, the Nintendo president was also asked about the impact of US tariffs and noted that they had predicted negative impacts of tens of billions of yen at the start of the fiscal year and had also recorded corresponding impacts in the first half of the year.
Nintendo is monitoring the high RAM prices and the effects of tariffs very closely, said Furukawa. “On the other hand, this is a crucial phase for our gaming business as we want to accelerate the introduction of new hardware and maintain the momentum of our platforms. We are working on this and monitoring the situation closely.”
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