Nintendo Raises Switch 2 Price by $50 Citing Memory Chip Costs

The release pointed to higher prices for components such as memory among other factors. The cost of memory chips has surged in recent months, doubling in the first quarter of 2026 as reported by Reuters. Booming demand from AI data centers has constrained the supply available for consumer electronics.

Sassine Ghazi, CEO of Synopsys, said much of the memory chip supply is going directly to AI infrastructure, leaving other industries starved for the components. Major video game consoles have seen price increases within the last eight months. Sony raised the cost of its PlayStation consoles by $100 or $150 per version in recent weeks, marking the second hike in one year.

Prices for most major consoles including those from Nintendo and Sony have gone up during this period.

Computer makers have also raised prices or adjusted product lines. One company increased the starting price of its 13-inch laptop and tablet line to $1,499 in April, a $500 rise from its original launch price of $999. Another discontinued its lowest-storage desktop model that sold for $599, making the next model priced at $799 the new entry-level option.

A virtual reality headset maker raised prices on its models by $50 to $100 in April. The company stated that the cost of building high-performance VR hardware has risen significantly, specifically citing memory chips. These changes follow the broader trend affecting phones, games and computers.

Memory chip manufacturers are working to expand production, but the process is expected to take time. Ghazi suggested it could require a minimum of two years for increased output to ease the shortage. The shortage is projected to continue through at least 2027.

One executive warned in April that the supply-to-demand gap could widen further in 2027 compared with 2026. Another industry leader stated in March that the shortage could persist for up to five years, with full production capacity potentially not meeting demand until 2030.

Major tech companies have announced increased spending on AI infrastructure and are seeking deals to secure chip supplies.