The increase in NAND flash memory prices, driven by the global boom in artificial intelligence, could pose an indirect threat to the new Nintendo Switch 2 console. According to Bloomberg, the cost of NAND memory is rapidly increasing, which is already affecting the accessories market and players' interest in buying new games.
Contract prices for NAND memory used in SSDs and memory cards may rise by up to 90% in the current quarter compared to the previous three-month period. In the past quarter, growth already exceeded 30%. One of the main reasons cited is the massive investment by technology companies in equipment for artificial intelligence, which actively uses such chips.
This is a particularly sensitive issue for Switch 2 due to the limited amount of built-in memory. The console is equipped with 256 GB of internal storage, which can be expanded with microSD Express cards up to 2 TB. However, modern games take up more and more space — a single major release can take up almost half of the console's built-in memory.
An additional problem is the rising price of memory cards. Japanese manufacturer Nextorage Corp. sells 256-gigabyte microSD Express cards compatible with Switch 2 for 13,350 yen (about $85). This is about 30% more expensive than such cards cost at the time of the console's launch in June.
According to the report, the rising cost of storage is already affecting user behavior. Although console sales themselves are faster than the original Nintendo Switch, buyers are purchasing fewer games. With 17.37 million devices sold, the average number of games per console is 2.18. For comparison, the first Switch had 3.88 games per system at a similar level of sales.
An analyst from Pelham Smithers Associates warns that the current trend could create long-term problems. According to him, if Switch 2 gains a reputation as a platform where only Nintendo's own games sell well, third-party publishers may gradually lose interest in the platform. This, in turn, could trigger a chain reaction affecting overall player interest in the console.