According to Bloomberg, Nintendo is facing rising component prices for the Switch 2: the company is now paying 41% more for RAM.
The system uses 12GB of LPDDR5X, divided into two 6GB modules from Micron. The cost of memory chips and storage is rising, which reduces the profit from each console sold.
Nintendo's shares have fallen by about 10% from their December peak due to component shortages and increased costs. The company is also paying 8% more for 256GB NAND storage from SK hynix.
Switch 2 is showing good sales: the production forecast has been increased by 4 million units, to 19 million this fiscal year. From April to September, more than 10.36 million consoles were sold, but the margin per unit is lower than that of Switch 1.
It is not yet known how the shortage of RAM and NAND will affect production and prices for consumers.
