Gaming can't escape the shadow of global economic uncertainty, and things may worsen following 2025's price hikes due to memory shortages driven by the AI and data center gold rush. After a strong summer launch but a slow Christmas for the Nintendo Switch 2, many wonder if it will remain unaffected by potential price increases.
In an interview with Kyoto Shimbun, Nintendo president Shuntaro Furukawa stated that while there is no immediate concern for earnings, the volatile memory market is something they are closely monitoring.
"We procure from suppliers based on our medium- to long-term business plans, but the current memory market is very volatile… There is no immediate impact on earnings, but it is something we must monitor closely."
Furukawa explained Nintendo is working on mitigating the effects of RAM shortages and fluctuating tariffs by advancing component procurement. However, he acknowledged that continued pressures could eventually lead to price increases similar to adjustments made by PlayStation and Xbox.
While Furukawa refrained from discussing potential price hikes directly, he did emphasize the importance of accounting for tariffs: "While it's difficult to accurately gauge the future impact, our basic policy is to recognize tariffs as a cost and pass them on to prices as much as possible, not just in the US."
Notably, the profit margins on consoles have historically been lower than expected, making them vulnerable to sudden shifts in tech component markets and tariffs. As the industry continues to face challenges with hardware production resources, navigating these rough waters will be essential for both companies and consumers.
No comments yet. Be the first to share your thoughts!