This is the reason the price of Nintendo Switch 2 soared
AI technology competition triggers an increase in the price of memory components
The price of the latest Nintendo Switch 2 game console has the potential to increase in the near future. This is not caused by declining sales, but due to the spike in the price of global memory components triggered by the competition for the artificial intelligence (AI) industry.
Nintendo is currently considering adjusting their console prices amid increasing production costs, especially for DRAM components. When launched in 2025, the console was sold at a price of USD 449.99 or around Rp. 7.5 million. However, the price is considered more difficult to maintain if the cost pressure continues.
The President of Nintendo, Shuntaro Furukawa, previously said that until now there has been no direct plan to raise prices. However, he did not rule out the possibility of adjustments if component prices continued to soar.
Interestingly, the potential for price increases occurs precisely when the sales performance of Switch 2 is quite strong. The console has reportedly sold more than 17 million units, surpassing the achievements of the first generation in the same launch period.
Challenges from the memory sector
The biggest challenge comes from the memory sector which is now a strategic commodity in the global AI technology race. Tech giants such as META, Microsoft, Alphabet Inc., and Amazon are making huge investments for AI data centers. The infrastructure requires accelerators from NVIDIA with a very high memory capacity, thus absorbing a large supply of global RAM.
As a result, memory prices soared sharply. One type of DRAM, even reportedly increased by 75 percent in just one month. Manufacturers such as Samsung Electronics, SK Hynix, and Micron Technology are now prioritizing the production of high-bandwidth memory (HBM) for AI chips, making the supply of consumer devices increasingly limited.
The widespread impact on the gaming industry
The impact is widespread in the gaming industry. Sony is reportedly considering a PlayStation 6 delay until 2028–2029, while Apple and Tesla have also warned of margin pressure due to memory scarcity.
Several other manufacturers have also begun to face similar challenges. Adjusting the price of consoles and other electronic devices is possible, especially if the upward trend in memory components prices continues.
Gamers’ readiness to face change
If the trend continues, gamers may have to be prepared to spend more to enjoy the latest generation of consoles. An increase in console prices can occur, regardless of good sales performance. This shows that the game industry is not only facing competition in terms of innovation, but also in terms of managing production costs.
In addition, manufacturers must also look for alternative solutions to reduce dependence on expensive memory components. Some steps such as supply diversification or innovation in device design may be a top priority.
Challenges in the future
The increase in the price of this memory component is also an indication that the world of technology is undergoing a massive transformation. Competition in the field of AI triggers a high demand for advanced components, including memory. This has an impact on the entire supply chain and industries that depend on the technology.
The big players in the technology and gaming industry must continue to adapt in order to survive in an increasingly competitive environment. With this situation, consumers also need to prepare themselves to face changes that may occur in the near future.
