The CEO of Big N saying that the situation needs to be monitored closely means that they’re going to raise prices.
A few weeks after RAM prices began to rise due to increased demand from AI data centers, which will not normalize for some time, the critical situation for consumers has become apparent. Consumers clearly misunderstood the situation, and the prices of some devices have already risen, with further increases expected. Current RAM prices and shortages will also affect consoles, and another price increase will make this console generation unusual. It is the first generation in which hardware prices have not fallen since launch but have actually risen.
For now, however, the Nintendo Switch 2 is unaffected by the current situation. In a new interview with Kyoto Shimbun, Shuntaro Furukawa, the CEO of Big N, commented on the impact of current high RAM prices on Nintendo’s next-generation system. He said that components are procured from suppliers based on the Japanese company’s medium- and long-term business plans. Therefore, current memory prices have no direct impact on their financial performance. The price of the Nintendo Switch 2 will remain stable in the near future. However, given the seriousness of the situation, no one can be complacent. According to Furukawa, they must closely monitor the situation before dismissing speculation about a possible price increase for the Nintendo Switch 2.
Although high RAM prices make introducing any new hardware challenging, Nintendo may be planning to launch a Switch 2 Lite model. During the interview, Furukawa mentioned that the company would like to make the Switch 2 available to first-time console buyers of a certain age. A cheaper Switch 2 Lite model would certainly appeal to younger audiences, but it remains to be seen how affordable such a system would be in the current climate.
With the AI boom showing no signs of slowing down, buying a Nintendo Switch 2 seems like the best option for those who want the system in the near future. Ultimately, Nintendo may face a difficult decision: reduce its profit margin to maintain the current price, or follow Sony and Microsoft’s example and raise the price after the June launch.
Source: WCCFTech, Kyoto Shimbun
![However, an anonymous GOG employee paints an even darker tone of the internal situation: „We were told it’s a financial decision. GOG’s revenue couldn’t keep up with growth, the fact that we’re dangerously close to being in the red has come up in the past few months, and the market’s move towards higher [developer] revenue shares have, or will, affect the bottom line as well.](https://thegeek.games/wp-content/uploads/2019/02/the-gog-1-302x180.jpg)
