Overview
- Nintendo says rising memory prices did not significantly affect Switch 2 hardware profitability in Q3 and it does not expect a significant impact in Q4.
- No decision has been made to change Switch 2 pricing, which the company says would be evaluated against profitability, installed base, sales trends, and market conditions.
- To contain costs and secure components, Nintendo is pursuing mass production, negotiating long term with suppliers, and maintaining inventory to stabilize memory supply.
- Executives warn that if elevated memory prices persist into the next fiscal year, profitability could be pressured and responses, including pricing, will be reassessed as AI datacenter demand tightens supply.
- Stronger Switch 2 sales in Japan are reducing margins because components are bought in U.S. dollars while local revenue is in yen; the console has sold 17.37 million units since its June 2025 launch as updates and new titles encourage transition.