'The market environment is indeed challenging': Nintendo president sounds the alarm on 'pressure' caused by surging memory prices as Switch 2 forecast stays at 19 million

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Despite strong sales, Nintendo now struggles with component costs

Nintendo Switch 2 Welcome Tour screenshot
(Image credit: Nintendo)

During a recent earnings call, Nintendo revealed that while sales are up, profit is down after a tough year, and already thin margins could get tighter looking ahead to 2026 and beyond.

The call, first reported on by Bloomberg Asia, reveals a profit of 23%, less than expected. This is largely blamed on the 2025 tariffs instituted by the U.S. Trump administration, which impacted several countries where Nintendo produces the Switch 2, including China and Vietnam. Nintendo President Shuntaro Furukawa highlighted the tariff issues while also raising concerns over the impact of rising memory costs.

"The market environment is indeed challenging. But we are engaging in long-term discussions with our suppliers to ensure we maintain a stable intake of chips,” Furukawa said.

"From the next fiscal year onward, if this price hike lasts longer than anticipated, it could potentially put pressure on our profitability,” Furukawa added.

Price increases?

A Nintendo Switch 2 photographed under RGB lighting

(Image credit: Tom's Guide)

Due to the ongoing memory shortage, it's suggested that Nintendo will sell different kinds of Switches, including new colorways, to ensure profitability. Still, rising component prices will be a struggle for not only Nintendo but also other major tech companies, including Apple and laptop manufacturers like Asus and Lenovo.

In January, Furukawa didn't rule out raising prices, though he noted that Nintendo is trying to get people to get into the ecosystem.

“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,” he said.

Later, a research firm predicted that Nintendo is likely to hike prices on the Switch 2 before the end of 2026. Again, thanks to the ongoing RAM crisis and the AI-caused memory shortage.

"We believe the Switch 2 is set to follow in Sony and Microsoft’s footsteps with its own price hike driven by the impact from tariffs, increased memory costs, and broader macroeconomic conditions," the firm posted.

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Scott Younker
Scott Younker
West Coast Reporter

Scott Younker is the West Coast Reporter at Tom’s Guide. He covers all the lastest tech news. He’s been involved in tech since 2011 at various outlets and is on an ongoing hunt to build the easiest to use home media system. When not writing about the latest devices, you are more than welcome to discuss board games or disc golf with him. He also handles all the Connections coverage on Tom's Guide and has been playing the addictive NYT game since it released.

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