**Nintendo’s Watchfulness Amidst Escalating Tariffs and RAM Expenditures**
In a recent discussion with Kyoto Shimbun, Shuntaro Furukawa, president of Nintendo, revealed perspectives on the company’s proactive strategies concerning the economic hurdles introduced by escalating tariffs and rising RAM expenses intensified by the global surge in AI computing demands. This scenario carries profound consequences for the gaming sector, especially regarding Nintendo’s forthcoming hardware, the Nintendo Switch 2.
Furukawa pointed out that the possibility of a price increase for the Nintendo Switch 2 is currently a speculative topic. Nonetheless, he recognized that a RAM scarcity driven by the needs of AI data centers could evolve into a significant issue in the future. This statement underscores the broader impact of technological progress on the availability and cost of components, which could eventually affect consumer products.
While discussing the challenges of maintaining a favorable profit margin for the Switch 2 compared to its predecessor, Furukawa elaborated that numerous elements influence hardware profitability. These include conditions for component procurement, cost efficiencies realized through mass production, and fluctuations in exchange rates and tariffs. He reiterated, “Hardware profitability hinges on components procurement conditions, cost savings via mass production, and the repercussions of exchange rates and tariffs.”
Despite various pressures from soaring material costs, Furukawa offered reassurance to stakeholders. He noted that the pricing of the Switch 2 remains stable for the time being, unless unexpected trade conflicts arise akin to those seen during the last administration. “Although we recognize the increasing costs of various materials, we also foresee several areas where cost reductions might be possible for Nintendo Switch 2 through continued mass production efforts,” he stated.
As the technology sector grapples with climbing costs—particularly in computer components like RAM and graphics cards—these challenges reach beyond just gaming companies to the wider public. The escalating difficulty of procuring these crucial components has prompted corporations such as NVIDIA to contemplate reintroducing older graphics cards, like the RTX 3060, to satisfy ongoing demand.
Furukawa disclosed that Nintendo had already faced substantial tariff-related expenses last year, amounting to tens of millions in losses during the first half. This financial pressure emerges at a pivotal moment as Nintendo seeks to encourage the adoption of new hardware and sustain momentum across its current platforms. “This is a vital time for our gaming business as we drive the adoption of new hardware and retain the momentum of our platforms. We are navigating this carefully while considering the circumstances,” he commented.
In August 2025, Nintendo responded to these economic challenges by adjusting the prices of its existing hardware. The original Nintendo Switch experienced an increase from $299 to $339, the Switch OLED went up from $349 to $399, and the Switch Lite rose from $199 to $229. These modifications indicate the seriousness with which Nintendo is addressing the influence of external economic factors.
While the company diligently tracks the impact of rising RAM expenses and tariffs, the precise strategies Nintendo will implement remain unclear. Furukawa concluded the conversation by stating that the company’s stance is to perceive tariffs as a cost that will be transferred to consumers in pricing. This strategy extends beyond the U.S. market and will be implemented globally as they navigate these volatile economic conditions.
In summary, as Nintendo braces for potential changes in pricing models driven by external variables, the industry will be observing how these developments could influence the launch and positioning of the Nintendo Switch 2 amidst the increasingly intricate global market dynamics.