Nintendo is actively seeking reliable sources for memory components as prices in that sector continue to rise.
During a recent earnings call, Nintendo president Shuntaro Furukawa acknowledged that the rising costs are occurring faster than anticipated. However, he noted that these increases did not significantly impact hardware profitability in the third quarter and are not expected to affect the fourth quarter either.
Yet, Furukawa cautioned that ongoing price hikes could challenge profitability in the future. Any potential price changes will consider various factors, including the existing user base, sales trends, and the overall market environment.
Interestingly, Valve recently postponed its hardware launch due to similar supply shortages, highlighting the industry’s struggles with memory and storage availability.
In terms of sales, the Switch 2 has shown impressive growth in Japan, surpassing expectations, especially during the holidays with popular titles like “Pokémon Legends: Z-A – Nintendo Switch 2 Edition” and “Kirby Air Riders.” Furukawa emphasized that Japanese users were transitioning to the Switch 2 at a higher rate compared to players elsewhere.
Large updates for popular existing games are also part of Nintendo’s strategy. Furukawa explained the importance of regularly introducing new content for games like “Animal Crossing: New Horizons” and “Splatoon 3.” This approach helps keep engagement high and encourages players to transition to the new console over time.
As for the numbers, Nintendo reported a net sales figure of ¥1.9 trillion (around $12.3 billion) for the nine months ending December 31, 2025, with an operating profit of ¥300.4 billion (approximately $1.9 billion). The Switch 2 sold about 17.37 million units in total, with seven million copies moving in just three months after its June 2025 launch.
With the gaming industry evolving rapidly, players seem eager for new experiences. According to a recent survey, 65% of gamers expressed interest in upgrading to next-gen consoles as new games hit the market. Nintendo’s strategy of keeping the momentum going with ongoing updates and new releases could play a key role in maintaining its strong position in this competitive landscape.
