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Nintendo Switch 2 may face a price increase due to rising memory costs linked to the AI data center boom. Demand for DRAM and storage is climbing as companies like Amazon and Google invest about $650 billion in AI infrastructure. This has raised the cost of components used in gaming consoles.
Higher memory prices are pressuring console profits. Sony and Nintendo are handling the issue differently. Sony may delay the PlayStation 6 launch until 2028 or 2029. Nintendo may raise the Switch 2 price to avoid losses.
The Switch 2 sells for $449. If memory prices remain high, Nintendo could lose about $50 per console. A new price above $500 would make it close to the PlayStation 5 Disk Edition at $539.
Bloomberg reports and past industry leaks have warned about memory cost problems. Analysts from Counterpoint Research expect DRAM and storage shortages to continue through the decade. The next year could bring the worst shortages yet as demand rises and buyers stock up.
Chipmakers like Samsung are shifting more production to high bandwidth memory for AI training chips sold to companies like Nvidia. These AI-focused chips bring about twice the profit of standard memory, leading to lower supply for consumer electronics.
Console makers are adjusting to these supply conditions. Shoppers may see higher prices or slower console releases as the AI boom affects the gaming market.
