Nintendo’s share price has been under pressure in recent months as the company grapples with rising production costs and broader industry challenges with the stock down 20% over the past five days with analysts tipping major price rises for their popular Nintendo Switch console.

The stock dropped to US$18.90 recently, down more than 24% from its 52-week high of about $24.92 in August with consumers in Australia looking to buy one of the popular products urged to get in now before severe price rises hit.

One key factor cited by analysts is the surging cost of components, particularly memory chips used in the highly anticipated Nintendo Switch 2.

Memory prices have climbed sharply amid booming global demand driven by artificial intelligence and data center buildouts — a trend that has tightened supply and boosted prices across the semiconductor industry.

According to industry data, prices for key memory components such as 12-gigabyte RAM modules are up more than 40%, while NAND flash storage costs have risen nearly 8% this quarter.

These increases are squeezing Nintendo’s manufacturing budgets and could raise the total bill-of-materials cost for Switch 2 hardware by an estimated 15%, compared with earlier production runs.

TrendForce estimates memory modules alone could represent 21–23% of the hardware cost for the lifecycle of the Switch 2.

Nintendo Switch Oled.

Some analysts warn that if Nintendo passes these higher costs on to consumers, the retail price of the Switch 2 could climb 15-20%, potentially dampening demand for what is already a premium-priced device.

This concern has added to investor unease, contributing to the stock’s recent weakness.

The broader backdrop of global chip shortages and high demand is not unique to Nintendo; many consumer electronics and home appliance manufacturers are also feeling the impact of tight memory supplies and elevated prices.

Nintendo’s market value has been notably affected by the share decline, with the drop from its August peak representing a multibillion-dollar reduction in market capitalization. Although the company previously hit record highs in August on strong Switch 2 pre-order enthusiasm, the stock has since corrected sharply as cost pressures and profit uncertainty weigh on investor sentiment.
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TrendForce forecasts also point to a modest contraction in global game console shipments next year, further complicating the demand outlook for Nintendo and its peers. With memory production unable to expand quickly enough to alleviate tight supply conditions, many industry participants expect price and supply imbalances to persist into 2026.