Rising RAM Costs and 'RAMmageddon' Threaten Nintendo Switch 2 Hardware Pricing
The ongoing boom in artificial intelligence (AI) technology is having wide-reaching effects across the global hardware market, with the video game industry now feeling the impact.
As major corporations like Meta, Microsoft, and Alphabet fuel the rapid growth of AI-powered data centers, demand for DRAM (dynamic random-access memory) has soared, leading to substantial increases in memory component costs.
Now, Nintendo is reportedly reconsidering its pricing strategy for the upcoming Switch 2 console, as the company braces for what industry insiders have referred to as "RAMmageddon." According to a Bloomberg report citing sources familiar with industry plans, Nintendo is evaluating the possibility of raising the Switch 2’s retail price in 2026 due to the ongoing surge in RAM costs.
This reevaluation follows reported decisions from other industry heavyweights, with Sony allegedly delaying its next PlayStation hardware to 2028-2029, partly in response to the instability in the memory market.
Nintendo itself reportedly contributed to a spike in demand after the original launch window of the Switch 2, as increased sales triggered higher storage card purchases and further strained supply chains. A recent statement, paraphrased from the Bloomberg report, notes: "Close rival Nintendo has contributed to increased demand for memory components in 2025 following the success of its new Switch 2 console.
The company is now considering raising hardware prices the following year, according to individuals familiar with its strategy.
Both Sony and Nintendo declined to comment when approached on this matter." Industry observers have been warning about such market pressures for months.
Tamara Shen, senior analyst at research firm Niko Partners, stated earlier this year that Nintendo would likely be compelled to adjust its pricing as rival platform holders—such as Sony and Microsoft—respond to component shortages and inflated costs.
In fact, both PlayStation and Xbox saw hardware price hikes in key markets throughout 2023, with PlayStation consoles rising by $50 in the United States. Nintendo President Shuntaro Furukawa addressed these concerns in January during an interview with Kyoto Shimbun, affirming the company’s commitment to monitoring market trends.
He stated, "I cannot comment on hypotheticals," when pressed about potential pricing changes, underlining the uncertainty surrounding hardware cost planning in the face of component shortages. This pressure extends beyond just game consoles.
As more AI-enabled applications come online and hyperscale data centers amass DRAM for powering chatbots and machine learning services, the memory market remains highly competitive and constrained.
Bloomberg research found the price of specific DRAM types escalating by 75% from December to January alone, further underscoring the severity of the current supply crisis. The Nintendo Switch 2, following up on the original Nintendo Switch’s global sales success, found itself at the crux of this industry-wide predicament.
While Nintendo managed to launch ahead of the most acute phase of "RAMmageddon," supply constraints and market instability suggest consumers should not anticipate price reductions anytime soon.
Past pricing controversies, such as the Switch 2’s original retail cost and the $80 price tag for Mario Kart World, highlight how price-sensitive the gaming audience remains as the market evolves. As Nintendo, Sony, and Microsoft continue to reevaluate hardware strategies under the shadow of AI-driven demand and supply chain volatility, the era of steady—or even declining—console prices may be at an end.
For industry professionals and gamers alike, staying informed on these developments is now essential as the next generation of gaming unfolds.
As major corporations like Meta, Microsoft, and Alphabet fuel the rapid growth of AI-powered data centers, demand for DRAM (dynamic random-access memory) has soared, leading to substantial increases in memory component costs.
Now, Nintendo is reportedly reconsidering its pricing strategy for the upcoming Switch 2 console, as the company braces for what industry insiders have referred to as "RAMmageddon." According to a Bloomberg report citing sources familiar with industry plans, Nintendo is evaluating the possibility of raising the Switch 2’s retail price in 2026 due to the ongoing surge in RAM costs.
This reevaluation follows reported decisions from other industry heavyweights, with Sony allegedly delaying its next PlayStation hardware to 2028-2029, partly in response to the instability in the memory market.
Nintendo itself reportedly contributed to a spike in demand after the original launch window of the Switch 2, as increased sales triggered higher storage card purchases and further strained supply chains. A recent statement, paraphrased from the Bloomberg report, notes: "Close rival Nintendo has contributed to increased demand for memory components in 2025 following the success of its new Switch 2 console.
The company is now considering raising hardware prices the following year, according to individuals familiar with its strategy.
Both Sony and Nintendo declined to comment when approached on this matter." Industry observers have been warning about such market pressures for months.
Tamara Shen, senior analyst at research firm Niko Partners, stated earlier this year that Nintendo would likely be compelled to adjust its pricing as rival platform holders—such as Sony and Microsoft—respond to component shortages and inflated costs.
In fact, both PlayStation and Xbox saw hardware price hikes in key markets throughout 2023, with PlayStation consoles rising by $50 in the United States. Nintendo President Shuntaro Furukawa addressed these concerns in January during an interview with Kyoto Shimbun, affirming the company’s commitment to monitoring market trends.
He stated, "I cannot comment on hypotheticals," when pressed about potential pricing changes, underlining the uncertainty surrounding hardware cost planning in the face of component shortages. This pressure extends beyond just game consoles.
As more AI-enabled applications come online and hyperscale data centers amass DRAM for powering chatbots and machine learning services, the memory market remains highly competitive and constrained.
Bloomberg research found the price of specific DRAM types escalating by 75% from December to January alone, further underscoring the severity of the current supply crisis. The Nintendo Switch 2, following up on the original Nintendo Switch’s global sales success, found itself at the crux of this industry-wide predicament.
While Nintendo managed to launch ahead of the most acute phase of "RAMmageddon," supply constraints and market instability suggest consumers should not anticipate price reductions anytime soon.
Past pricing controversies, such as the Switch 2’s original retail cost and the $80 price tag for Mario Kart World, highlight how price-sensitive the gaming audience remains as the market evolves. As Nintendo, Sony, and Microsoft continue to reevaluate hardware strategies under the shadow of AI-driven demand and supply chain volatility, the era of steady—or even declining—console prices may be at an end.
For industry professionals and gamers alike, staying informed on these developments is now essential as the next generation of gaming unfolds.
