Why Nintendo Switch 2 could cost over $500
Nintendo's next-gen Switch 2 might be repriced above $500 in 2026, up from the expected $450.
The reason? Memory chips are getting pricier as AI data centers snap them up, making it tough for Nintendo to keep costs down.
President Shuntaro Furukawa says the current memory market is "very volatile," and that Nintendo is monitoring the situation closely.
AI data centers are hoarding memory chips
Big tech companies are projected to pour $650 billion into expanding their AI data center roster, which means less DRAM (the memory consoles need) is available for gaming devices.
Samsung's also focusing on high-end memory for NVIDIA, pushing regular DRAM prices even higher—a trend that is making memory quickly become the single priciest component in devices.
RAM crunch is affecting all gaming devices
The RAM crunch isn't just Nintendo's problem.
Sony could delay the PS6 until 2028 or later because of these shortages, and Valve has already postponed its Steam Machine launch.
Even Nintendo's own Switch 2 storage cards contributed to the surplus demand.