Nintendo is making efforts to "ensure a steady supply of memory components" in order to prevent increases in hardware costs
Nintendo is making efforts to maintain a steady supply of memory components in response to escalating costs in the industry.
During an earnings call Q&A released today, Shuntaro Furukawa, President of Nintendo, acknowledged that the unexpected surge in prices hasn't heavily affected the hardware's profit margins in the recent quarter. Moreover, they do not predict a strong impact on their financial results for the upcoming quarter.
Nonetheless, Furukawa noted the potential for future price increases, adding pressure on profitability.
"Any decision to adjust the price will be made based on multiple aspects, including the platform’s user base, market conditions, sales performance, as well as profitability," he stated.
He further mentioned that a prolonged elevation in memory prices could begin to negatively influence hardware profitability, prompting a careful assessment of various factors to address this challenge.
Valve, facing similar challenges with memory and storage shortages, had to postpone the timing for unveiling its new hardware.
In other news, Furukawa shared insights on how sales of the Switch 2 surpassed other regions within Japan, performing beyond expectations following significant holiday promotions on games such as Pokémon Legends: Z-A – Nintendo Switch 2 Edition and Kirby Air Riders.
"Our observation is that these releases prompted a higher transition rate to Switch 2 among Japanese users compared to global Switch owners."
Furukawa also spoke about the impact of major updates for well-known Switch games aimed at the new console, such as Animal Crossing: New Horizons and Splatoon 3.
"Continual introduction of new titles is essential to boost the user base of the new hardware," Furukawa remarked.
He added, "Maintaining engagement with our customers is crucial during the Switch to Switch 2 transition period over the coming years."
By offering updates for games like Animal Crossing: New Horizons and Splatoon 3, which have achieved strong sales on the original Switch, Nintendo aims to encourage a natural transition to Switch 2 as new games are introduced that attract consumer interest.
"Releasing updates for existing Switch software helps in sustaining user interaction and promoting continued gameplay," he concluded.
Nintendo's recent financial report declared net sales of ¥1.9 trillion ($12.3 billion) for the nine months ending on December 31, 2025, alongside an operating profit of ¥300.4 billion ($1.9 billion).
The Switch 2 achieved sales of 17.37 million units since its release in June 2025, with seven million units sold in the quarter ending December 31, 2025.