Join The Community
Nintendo has confirmed it aims to tackle the ongoing memory shortage through mass production of Switch 2 units.
The ongoing memory shortage has been a hot topic in the tech world as RAM prices are ballooning thanks to AI garbage ruining everything it touches. This has already caused Valve to revisit Steam Machine pricing and release timing due to shortages, while both Sony and Nintendo have had to acknowledge the chances of this causing price hikes for their consoles in the near future (although neither are planning on price increases right now).
During a recent Q&A following Nintendo's latest financial results, Nintendo president Shuntaro Furukawa was asked if the company will prioritize selling as many Switch 2 consoles as possible to expand the install base or make sure its not selling the hardware at a loss. Furukawa responds, "The current rise in memory prices is happening at a pace that exceeds our expectations. In general, the profitability of hardware tends to improve with economies of scale, and we want to continue to reduce costs as much as possible through mass production of Nintendo Switch 2 hardware."
As for not selling hardware at a loss, he explains, "What we are focusing on is profitability on a global basis. There are various external factors, such as fluctuations in exchange rates, but looking at the global picture, we have traditionally tried to avoid situations where individual units are sold at a loss as much as possible."
Furukawa adds that "I think it is not an appropriate approach to be excessively influenced by short-term trends," noting that "the second and third years for Nintendo Switch 2 are very important." He explains, "If we can expand the hardware installed base, we can use that as a basis to greatly expand software sales. We will take this into account when making business decisions and flexibly consider various options." So while it's not impossible, it seems like Nintendo is trying to avoid raising the price of the Switch 2 as much as it can.
The arrival of the PS6 may be delayed thanks to AI production, but that might not be a bad thing
