"Nintendo said it was raising the Switch 2 price in Japan to 59,980 yen, effective May 25, from 49,980 yen, "in light of changes in market conditions and after considering the global business outlook." Company president Shuntaro Furukawa said higher component costs, along with factors including exchange rates, were reflected in Nintendo's decision."
"Nintendo said that higher component costs, particularly memory, and the impact of tariffs is expected to add roughly 100 billion yen ($874 million Cdn) to costs in the current financial year. "The very fact that Nintendo felt compelled to act [price increase] suggests the rise in memory costs has become severe enough that it could no longer be absorbed internally and, crucially, that there is little prospect of those cost pressures easing in the near term," HSBC analyst Kazunori Ito told Reuters."
"Memory chip prices doubled in the first quarter alone from the previous quarter and are forecast to climb up to 63 per cent in the current quarter due to AI data centre demand that has impacted supply for smartphones, laptops and automobiles. WATCH | AI boom is causing a memory chip shortage: The artificial intelligence boom is driving a worldwide shortage in memory chips that could soon drive up prices in everything from smartphones to laptops to video game consoles."
"All major Japanese exporters are having to cope with U.S. President Donald Trump's tariff hikes and other higher costs that have been worsened by the war in Iran. Nintendo and Sony are also both grappling with the impact of surging memory chip prices, Reuters reports, as the artificial intelligence boom constrains chip supply and deepens disruptions across the tech sector."
Nintendo will increase the Nintendo Switch 2 price in Canada to $679.99 from $629.99 effective Sept. 1. Nintendo will also raise the price in Japan to 59,980 yen from 49,980 yen effective May 25. The company cited changes in market conditions and the global business outlook. Nintendo said higher component costs, including memory, and exchange-rate effects contributed to the decision. Tariff hikes and other higher costs are also affecting exporters. Surging memory chip prices are linked to AI-driven demand and constrained supply, affecting smartphones, laptops, and automobiles. Nintendo expects the changes to add roughly 100 billion yen to costs in the current financial year.
Read at www.cbc.ca
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