AI memory demand may raise Nintendo Switch 2 and console prices

The gaming console market may face unexpected price hikes, with the Nintendo Switch 2 potentially being one of the first to be affected. According to Bloomberg, Nintendo is considering raising the price of its new console due to a sharp increase in memory costs. The Switch 2 is already selling for around 3,100 yuan on Chinese e-commerce platforms, and this price might not be final.

The reason for the rising costs lies outside the gaming industry. A massive race among global tech corporations in artificial intelligence has led to explosive demand for memory modules. Huge amounts of RAM are being used to build data centers for AI, which reduces supplies for consumer electronics and sharply drives up component prices. As a result, even major players like Nintendo are forced to reassess their financial plans.

This situation doesn't just affect the Japanese manufacturer. Earlier reports indicated that Sony and Microsoft are considering delaying the launch of their next-generation consoles until 2028 specifically due to memory price increases. Moreover, even if new consoles are released on schedule, their starting prices could be significantly higher than those of previous generations.

It's worth noting that for the first time in a long while, the console market finds itself dependent not on graphics or processor technology, but on the global AI race. If memory prices continue to rise, consumers will need to adjust to the idea that new gaming consoles may no longer be affordable mass-market products, instead becoming expensive devices right from the start of sales.