The major players in the video game industry are likely to be hit hard by RAM shortages and general price increases. Nintendo could be one of them, and the subject was raised to Shuntaro Furukawa, the president of the Japanese firm.
When questioned by the Kyoto Shimbun, the businessman declined to comment on the possibility of a price increase for the Switch 2. However, he did say that he was paying close attention to market developments.
“We source from suppliers based on our medium- and long-term business plans, but the memory market is currently very volatile. There is no immediate impact on earnings, but we need to monitor the situation closely.”
Furukawa also mentioned the lower profit margins of the Switch 2 compared to the Switch 1.
“The profitability of our devices depends on factors such as component supply conditions, cost reductions through mass production, and the impact of exchange rates and tariffs.
It is difficult to generalize. Fundamentally, our goal is to address this issue by advancing component procurement in the medium to long term.”
