Nintendo is working to “secure stable supplies of memory components” as prices continue to rise within the sector.
In an earnings call Q&A published today, Nintendo president Shuntaro Furukawa said that despite the price rises “happening at a pace that exceeds our expectations,” it did not have “a significant impact on hardware profitability in the third quarter,” nor does it expect its Q4 results to be affected.
However, Furukawa did not rule out future price rises, as it “may put pressure on profitability.”
“Any decision to change the price will be determined comprehensively, taking into consideration not only profitability, but also other factors like the platform’s installed base, sales trends, and the market environment,” he said.
“If the rise in memory prices continues for longer than expected, it may start to have an effect on hardware profitability. In this case, we will examine various factors to determine how to handle the situation.”
Valve recently had to delay its new hardware launch timing due to the ongoing memory and storage shortages.
Elsewhere, Furukawa addressed how Switch 2 hardware sales in Japan outpaced the rest of the market, noting that it trended “better than [its] expectations” following holiday sales of Pokémon Legends: Z-A – Nintendo Switch 2 Edition and Kirby Air Riders.
“We believe that users in Japan saw these titles as an opportunity to transition to Switch 2 at a relatively higher rate compared to Nintendo Switch owners outside of Japan.”
The Nintendo president also commented on the effect of large-scale updates for popular Switch titles for the new console, including Animal Crossing: New Horizons and Splatoon 3.
“It is necessary to regularly release new titles to increase the installed base of new hardware,” Furukawa explained.
“In addition, we believe it is very important to maintain touchpoints with consumers who are active on our gaming systems as the transition from Switch to Switch 2 unfolds over the next few years.”
He continued: “By releasing updates for Animal Crossing: New Horizons and Splatoon 3, which both saw high sales volumes on Switch, we hope to create a flow where, as consumers continue to play on Switch, they will transition to Switch 2 when new titles that catch their attention are released.
“From this perspective, it is meaningful to release updates for Switch software, which has a large installed base, to maintain user activity and encourage continued play.”
In its latest financial results, Nintendo generated net sales of ¥1.9 trillion ($12.3 billion) for the nine months ending December 31, 2025, and an operating profit of ¥300.4 billion ($1.9 billion).
The Switch 2 shifted 17.37 million units following its launch in June 2025, selling seven million copies in the three months ending December 31, 2025.
