Nintendo believes that the increase in memory costs will only have a marginal impact on its business through the end of March.

Impact of Rising Memory Prices on the Gaming Console Market

Since the end of last year, memory chip prices have continued to rise at an accelerating pace, and this is felt not only in the smartphone segment but also among gaming console manufacturers. In response to changing conditions, Nintendo has acknowledged that price increases are occurring faster than expected, but it does not yet foresee serious consequences for its operations through the end of March.

1. Financial Results for the Last Quarter
- The third fiscal quarter (approximately September to December) passed without a noticeable deterioration in profitability, despite higher component costs.
- Nintendo concludes its fiscal year in March of the following year and does not expect significant impact from current price trends on near‑term results.

2. Possible Company Actions
- President Shuntaro Furukawa emphasized that if a price increase for the Switch‑2 becomes necessary, the decision will be made considering:
- profitability levels;
- market conditions;
- demand dynamics for consoles.
- In case of further memory cost increases, Nintendo plans to develop response strategies taking into account many factors.

3. Example from Competitive Environment
Valve recently had to postpone the launch of new gaming devices because component shortages and rising memory prices hampered production.

4. Switch‑2 Sales in Japan
- In the last quarter, the Switch‑2 showed better sales dynamics within Japan compared with overseas markets and exceeded its own expectations.
- Key drivers were new games:
- *Legends: Z-A — Nintendo Switch 2 Edition*
- *Kirby Air Riders*
- The company head noted the importance of continuously updating the game portfolio to retain users and encourage transition to the next generation of consoles. Transition from Switch to Switch‑2 is expected over several years.

5. Sales Overview
Period | Switch‑2 Sales | June 2025 (release) | 17.37 million units | Previous quarter ~7 million units

Thus, Nintendo does not yet feel significant pressure from rising memory prices but is preparing for possible adjustments in pricing strategy and game lineup in the coming years.