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Nintendo Switch 2 Component Costs Surge 41% — Is a Price Hike Inevitable?

Nintendo Switch 2 Component Costs Surge 41% — Is a Price Hike Inevitable?
Image credit: Legion-Media

Bloomberg reports Nintendo is getting squeezed on Switch 2 parts: 12GB LPDDR5X has jumped about 41% and 256GB NAND is up 8%, pushing up unit production costs and pressuring its strategy.

Short version: the parts that make the next Nintendo handheld fast and roomy just got pricier. Not exactly the fun kind of news, but it does matter for anyone eyeing a Switch 2.

What changed and why

Per Bloomberg, Nintendo is getting hit with a roughly 41% jump in the cost of the 12 GB LPDDR5X modules used in the Switch 2. That’s the speedy mobile RAM that keeps games running smoothly. On top of that, 256 GB NAND flash storage (the internal memory that holds your games and data) is up about 8%.

Memory is one of the most expensive line items in any console, so those two bumps move the needle. The result: higher per-unit production costs for Nintendo hardware across the board, and the obvious question of whether the Switch 2’s price tag will creep up because of it.

For now, production isn’t stopping. And since this is the start of what’s supposed to be a long life for the new system, the pressure is on Nintendo to keep investing in the hardware without sanding off quality just to save a few bucks.

What it means for players

Right now, it sounds like Nintendo is eating the fluctuations to keep console pricing steady. That’s great in the short term, but it stings over time, even for a company with deep pockets. If the DRAM spike hangs around, something has to give.

  • No immediate sticker shock is the hope, but you could feel it elsewhere: fewer deep discounts on games, fewer bundle deals, or pricier accessories.
  • Storage expansion has basically become mandatory as game sizes balloon, so pricier memory on Nintendo’s end can ripple into how they package or promote storage options.
  • If DRAM stays elevated, Nintendo may eventually have to revisit the Switch 2’s retail price. Not ideal, but also not unheard of when component costs swing this hard.

The bigger picture

This is one of those nerdy component-cost stories that actually matters. The Switch 2 is leaning on modern memory to deliver a real performance bump over the original. When those specific parts spike, even a small percentage change stacks up fast at scale. Nintendo appears committed to keeping the launch on track and the machine competitive, but keep an eye on the price dynamics around the edges. If the market doesn’t cool off, the console price conversation could get louder.