Nintendo Loses  Billion in Market Value Due to Memory Shortage: Switch 2 Will Inevitably Cost More

Nintendo Loses $14 Billion in Market Value Due to Memory Shortage: Switch 2 Will Inevitably Cost More

The company will pass all higher console production costs onto gamers.

Bloomberg reports that since early December Nintendo’s shares have slipped on nearly every trading day, reaching their lowest level since May 2025. Over that span the company has forfeited roughly $14 billion in market capitalization. The decline was sparked by a steep increase in the cost of memory components required for the Nintendo Switch 2.

According to a TrendForce analysis, the price of the 12‑GB LPDDR5 RAM chips designated for the Switch 2 has risen about 41%, while NAND flash costs are up roughly 8%. Analysts now say the question is no longer whether Nintendo will raise the console’s price, but when it will do so.

Nintendo has not yet issued an official statement about a potential price increase. Nonetheless, memory-market conditions continue to worsen, and investors seem to be betting that a price hike is unavoidable.

 

Source: iXBT.games