Nintendo Secures Memory Components to Prevent Hardware Price Hikes
Nintendo is taking proactive measures to secure a steady supply of memory components as prices in the sector continue to rise. During a recent earnings call, President Shuntaro Furukawa indicated that the soaring costs are happening at a faster rate than the company anticipated.
Impact on Hardware Profitability
Despite these rising costs, Furukawa reported that there has been no significant effect on hardware profitability for the third quarter. He assured stakeholders that the fourth quarter results are also expected to remain stable. However, he acknowledged that future price increases may create pressure on profitability.
Furukawa emphasized that any potential price adjustments would consider several factors, including:
- Profitability
- Installed base of the platform
- Sales trends
- Market conditions
If memory prices persist in climbing, Nintendo plans to assess its options for addressing the issue.
Market Performance of Switch 2
In the earnings call, Furukawa noted that sales of the Switch 2 have significantly outpaced market expectations in Japan. The device saw strong sales following the holiday releases of popular titles such as Pokémon Legends: Z-A – Nintendo Switch 2 Edition and Kirby Air Riders.
He observed that Japanese consumers are transitioning to Switch 2 at a higher rate than those in other regions.
Upcoming Software Updates
Furukawa also highlighted the importance of introducing large-scale updates for successful Switch titles as the migration to the new console progresses. Specifically, he mentioned ongoing updates for:
- Animal Crossing: New Horizons
- Splatoon 3
These updates aim to maintain user engagement and encourage gamers to adopt the Switch 2 as new attention-catching titles are launched.
Financial Overview
Nintendo reported robust financial performance for the nine months ending December 31, 2025. Key statistics include:
- Net sales: ¥1.9 trillion (approximately $12.3 billion)
- Operating profit: ¥300.4 billion (approximately $1.9 billion)
- Switch 2 units sold since launch: 17.37 million
- Units sold in the last quarter of 2025: 7 million
As Nintendo navigates these challenges, the company remains focused on sustaining its foothold in the competitive gaming market while addressing supply chain uncertainties.
