The tech industry is currently grappling with significant challenges due to ongoing memory chip shortages. This issue is affecting major companies as they adjust their strategies to cope with the crisis. Reports suggest that Samsung is making substantial shifts in production, while Framework has openly communicated that price hikes are a direct consequence of these shortages. Most recently, Nintendo has faced a considerable financial impact, losing $14 billion in share value as fears surrounding the memory shortages intensify.
Nintendo Faces Rising Costs and Price Pressures
Nintendo’s stock has seen a steady decline throughout December, reaching its lowest point since May 2025. According to sources, the company is now spending 41% more on 128GB RAM chips for the Nintendo Switch 2 consoles, with NAND storage prices also seeing an 8% increase. This situation raises questions about when, not if, Nintendo will be compelled to increase the price of the Nintendo Switch 2.
Pelham Smithers, from Pelham Smithers Associates, highlighted that the increasing costs of memory chips have already been passed on to consumers through the retail prices of express microSD cards. Smithers noted that a 256GB express SD card is priced at $89.99 on Amazon, reflecting a cost that Nintendo has effectively transferred to gamers.
MicroSD Express Card Availability and Black Friday Sales
While consumers have the option to rely on the Switch 2’s internal storage, the growing trend of digital games and Game Key Card editions means that even the enhanced storage of the Switch 2 may not be sufficient for many players. Additionally, reports indicate that MicroSD Express Cards are becoming harder to find, compounding the challenge for buyers who wish to expand their storage options.
Despite these hurdles, the recent Black Friday sales figures for the Nintendo Switch 2, including bundles with Mario Kart World, were unexpected successes. Smithers described the discounts available during this period as “surprises,” especially so close to the holiday season. Although the Switch 2 was among the top-selling consoles during Black Friday, it’s uncertain whether it can maintain its popularity given the current manufacturing costs.
Stability Concerns and Future Outlook
Even though Nintendo’s president, Shuntaro Furukawa, has assured stakeholders and consumers that the console’s price will “remain stable” in the immediate future, this assurance may face challenges in the coming new year. The combined impact of rising production costs and ongoing memory shortages could prompt changes once the holiday season concludes.
