Nintendo has confirmed it is closely monitoring the growing impact of global tariffs and rising memory prices as the company prepares for the next phase of its hardware business. With AI-driven data centers consuming massive amounts of RAM worldwide, competition for components is intensifying — and Nintendo admits this could eventually affect the cost of its upcoming console hardware.
In a rare interview with Japanese newspaper Kyoto Shimbun, Nintendo president Shuntaro Furukawa addressed the financial pressures facing the company as it looks toward the future of the Nintendo Switch platform and its successor.
Rising Costs Could Shape Switch 2’s Future Price
Furukawa stopped short of confirming any future price increase for the rumored Nintendo Switch 2, calling such discussions hypothetical for now. However, he acknowledged that growing demand for memory — fueled largely by AI data centers — could become a real challenge in the coming years.
According to Furukawa, hardware profitability depends on several volatile factors, including:
- Component procurement conditions
- Cost reductions through mass production
- Exchange rate fluctuations
- The ongoing impact of global tariffs
These pressures, he explained, directly influence how aggressively Nintendo can price its hardware while still maintaining sustainable margins.
Tariffs Remain a Major Uncertainty
The Nintendo president also revisited concerns he previously shared with investors regarding trade policy. Last year, the company projected a negative impact from tariffs that ultimately cost Nintendo tens of millions in the first half of the fiscal year alone.
Furukawa emphasized that the situation remains delicate as Nintendo works to introduce new hardware while preserving momentum across its platforms.
“This is a crucial period for our game business,” he said, noting that every pricing decision now carries long-term consequences for the company’s ecosystem.
Hardware Costs Are Rising Across the Industry
Nintendo’s concerns mirror broader issues affecting the entire tech sector. The rising cost of PC components — particularly RAM and graphics cards — has already made building or upgrading a gaming PC significantly more expensive for consumers.
Demand has become so intense that hardware manufacturers are reportedly considering reintroducing older graphics cards to help stabilize supply, underscoring how strained the market has become.
For console makers like Nintendo, these same pressures threaten to narrow already slim hardware profit margins.
Nintendo Has Already Raised Prices Once
Nintendo has not been immune to these market forces. In August 2025, the company raised prices across its existing Switch lineup:
- Standard Switch: from $299 to $339
- Switch OLED: from $349 to $399
- Switch Lite: from $199 to $229
The move showed that Nintendo is willing to pass rising costs onto consumers when necessary — even for hardware nearing the end of its lifecycle.
Will Switch 2 Reach $500 in 2026?
While Furukawa insisted that current pricing plans for Switch 2 remain stable, he made it clear that Nintendo’s long-term policy is to treat tariffs as a cost that must eventually be reflected in retail prices.
“Our basic policy is to recognize tariffs as a cost and pass them on to prices as much as possible, not just in the U.S.,” he said.
That statement has reignited speculation that $500 could become a realistic price point for Switch 2 if memory shortages, tariffs, and manufacturing costs continue to climb through 2026.
For now, Nintendo is holding the line — but the company is clearly preparing for a future where global economics, not just gaming trends, may decide how much players pay for their next console.
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