Nintendo shares fall as global memory squeeze raises risks for Switch 2

Nintendo’s latest share slump is drawing attention to a wider shift in the tech supply chain, as rising memory costs ripple through gaming hardware.

Shares fell as much as 2.6% on Wednesday, reaching the lowest level since May during intraday, after investors reacted to concerns that expensive components could weigh on profitability.

The pressure reflects a global surge in prices for memory chips, a trend already affecting PC makers and now moving into the console sector.

Bloomberg reports that for Nintendo, this means a more challenging cost environment just as the Switch 2 enters a crucial sales phase during a highly competitive period.

Memory costs rise

Nintendo faces a sharp jump in the cost of key parts used in the Switch 2.

Market intelligence firm TrendForce reported that the 12GB RAM modules required for the console rose 41% in the current quarter.

NAND storage used inside the device became nearly 8% more expensive, and that rise is also influencing the price of add-on storage cards.

These increases matter because the console’s built-in storage is limited, so many players rely on expandable memory to manage large game downloads effectively.

Market value pressure

The company’s share performance reflects these concerns. Nintendo’s stock has dropped in seven of the first eight trading days of December, erasing about $14 billion in market value.

This decline comes as optimism around the Switch 2 cools in the face of higher component costs and a global memory supply shortage.

PC makers such as Dell Technologies Inc. and HP Inc. have already warned that next year could bring price increases due to rising component costs.

The trend points to an industry-wide squeeze rather than an isolated challenge for Nintendo.

Accessory prices drive demand risks

Accessory pricing is becoming another pressure point.

Rising NAND prices have pushed up the cost of high-capacity storage cards, with a 256GB Express SD card now listed at $89.99 on Amazon.

This creates a secondary layer of expense for consumers.

Third-party games from publishers including Electronic Arts Inc. can effectively cost about $20 more once the required storage is factored in, making total spending on the console ecosystem higher than expected.

These shifts may influence purchasing behaviour during a period when demand is sensitive to price changes.

Switch 2 discounts appear early

There are also signs of softer pricing momentum for the console itself. The Switch 2 launched with record-setting early sales, outpacing other gaming systems in launch performance.

But the device appeared in discounted bundles earlier than anticipated.

During Black Friday, a Switch 2 plus Mario Kart World offer circulated online with a $50 reduction, which meant the bundled game was effectively free.

Such discounts close to the holiday season have raised questions about whether sustained demand will extend beyond Nintendo’s core user base.