Nintendo President Shuntaro Furukawa has commented on the company's hardware profitability, the current memory market, and potential future pricing for its products. He stated that while rising RAM prices currently have no immediate impact on Nintendo's earnings, the situation requires close monitoring due to market volatility.
Hardware Profitability and Component Costs
Furukawa explained that hardware profitability is influenced by several factors, including conditions for component procurement, cost reductions achieved through mass production, and the impact of exchange rates. The company's objective includes addressing these issues through long-term component procurement strategies.
The broader gaming hardware economy has seen shifts, with RAM and GPU prices rising, partly attributed to increased demand from the AI sector. These economic conditions have previously led to price adjustments for consoles from other manufacturers, such as PlayStation and Xbox.
Despite acknowledging rising material costs, Furukawa had previously informed investors in November that Nintendo anticipates achieving cost reductions for the Nintendo Switch 2 through continuous mass production efforts.
Pricing and Future Outlook
The Nintendo Switch 2 currently maintains its price of $449.99, a price point that has remained consistent since its initial announcement in April 2025. Furukawa declined to comment on specific future price increases for any Nintendo hardware, labeling such scenarios as "hypotheticals." He indicated that while the company is not currently planning a price increase, it remains a possibility if market conditions deteriorate.
In contrast to the Switch 2, certain other Nintendo hardware, including select accessories and older Switch models, experienced price adjustments in August of the previous year.
Impact of Tariffs
Regarding tariffs, Furukawa noted the challenge in accurately gauging their future impact. He stated that Nintendo's strategy is to recognize tariffs as a cost and, where feasible, pass them on to prices. This practice is not exclusively applied to the US market.
Strategic Focus
Furukawa highlighted the current period as crucial for the game business, emphasizing the importance of promoting new hardware adoption and sustaining platform momentum.