The tech industry is currently facing a significant challenge due to memory chip shortages, impacting major companies worldwide. This crisis has led to shifts in production strategies and consumer price adjustments. At the forefront of this issue is Nintendo, which has experienced a dramatic $14 billion decrease in its share value amidst growing concerns about these shortages.
Nintendo’s Financial Struggles Amidst Memory Shortages
Nintendo’s shares have consistently dropped in December, reaching their lowest point since May 2025. Reports indicate that the company is now incurring 41% higher costs for the 12GB RAM chips used in producing Nintendo Switch 2 consoles. Additionally, NAND storage prices have climbed by 8%, prompting speculation that price hikes for the Nintendo Switch 2 are inevitable.
The Impact on Consumers
As the costs of components rise, Nintendo has already begun passing these expenses to consumers through increased express microSD card prices. Pelham Smithers of Pelham Smithers Associates highlighted this trend, noting that a 256GB express SD card is priced at $89.99 on Amazon, a cost ultimately borne by gamers.
While not mandatory, express microSD cards are becoming scarce amid ongoing shortages, complicating the decision for buyers. Despite these challenges, the recent Black Friday sales for Nintendo Switch 2 and Mario Kart World bundles were unexpectedly discounted, drawing consumer interest.
Future of Nintendo Switch 2 Pricing
The Switch 2 was among the top-selling consoles this Black Friday, even with the PS5 leading in the EU. However, concerns linger over whether Nintendo can maintain this momentum given the increasing production costs. Currently, Nintendo’s president, Shuntaro Furukawa, assures that prices will remain stable, but this promise may waver as the new year approaches.
Nintendo faces a $14 billion drop in share value due to memory chip shortages impacting the production of Switch 2 consoles.
As the industry navigates these turbulent times, both consumers and investors watch closely to see how companies like Nintendo adapt to these persistent challenges.