Nintendo has assured shareholders that the recent surge in component prices will not negatively affect the profitability of the Nintendo Switch 2. During a recent shareholder meeting, the company addressed growing concerns surrounding the rising cost of key materials—particularly memory components—that have impacted several sectors of the tech industry.
When asked about the potential impact of these price increases once existing inventory runs out, Nintendo President Shuntaro Furukawa expressed confidence in maintaining the company’s current level of hardware profitability. “Barring a major external change, such as a shift in tariff assumptions, or an unforeseen event, we believe we can maintain hardware profitability at the same level as the present for the time being,” Furukawa stated. He further explained that while the company is aware of rising component costs, it anticipates corresponding reductions in manufacturing expenses as mass production of the Switch 2 ramps up.
Furukawa emphasized that Nintendo’s strategy for the console’s launch involves carefully managing production costs to offset market fluctuations. “We recognize that the prices of various components are rising, but we also anticipate cost reductions for the Switch 2 as we continue with mass production,” he added. “Therefore, at this time, we do not foresee a significant impact on profitability from the current increase in component prices.”
The Nintendo Switch 2, which launched in June 2025, serves as the official successor to the original hybrid console first introduced in 2017. Retaining its dual-function design for handheld and docked play, the system offers several hardware upgrades, including a 7.9-inch 1080p LCD display, an enhanced custom NVIDIA processor, and the ability to output up to 4K resolution at 60 frames per second when docked. Priced around 450 dollars, the Switch 2 also supports backward compatibility with most existing Switch titles, and features redesigned magnetically attached Joy-Con 2 controllers alongside new social functions such as “GameChat.”
Nintendo’s remarks suggest that, at least in the short term, the company is well positioned to maintain profitability despite broader supply chain cost pressures. By leveraging economies of scale and optimizing production efficiency, Nintendo appears confident that the Switch 2’s strong sales trajectory will not be undermined by fluctuations in component pricing.
