Nintendo shares slide as Switch 2 memory costs rise and storage gets pricier

15 December 2025
Nintendo Switch 2
9 min.
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Nintendo shares slide as Switch 2 memory costs rise and storage gets pricier

Summary:

Nintendo’s share price took a hit after a fresh wave of supply and pricing worries landed in the market’s lap. The concern is simple: if key parts inside the Nintendo Switch 2 get more expensive, the console becomes harder to sell at the same profit level. Reports pointed to two specific pressure points. The first is DRAM, with the cost of the 12GB RAM modules said to be sharply higher in the current quarter. The second is NAND flash, the storage used inside the system, which was also reported to be more expensive. Those increases don’t just stay inside the factory walls either. They can spill into the real-world price you and we pay, especially when storage expands beyond the built-in capacity through microSD Express cards.

The storage angle is where the story turns from stock charts to everyday reality. If the Switch 2’s internal storage fills up quickly, microSD Express stops being a “nice to have” and starts feeling like the power cable: technically optional, but good luck without it. Analysts quoted in reporting argued that rising NAND prices are already pushing up microSD Express pricing, and pointed to examples like a 256GB card being listed at $89.99 at the time. That kind of add-on cost can make third-party games feel more expensive, not because the game price changed, but because storage becomes part of the checkout math. In the sections below, we walk through what’s being reported, why investors care, and what practical moves we can make as players while the market for memory and storage stays tense.

The stock dip and what spooked the market

Nintendo’s shares sliding on a single news cycle might look dramatic, but the “why” is actually pretty relatable. Investors don’t just watch how many consoles sell – they watch how much money is left after each one is built and shipped. When reports suggest that core Switch 2 components are getting more expensive, the market starts asking uncomfortable questions. Will Nintendo absorb the cost and accept thinner margins? Will it adjust pricing somewhere else, like accessories or bundles? Or will it lean harder on software and services to keep the math working? The immediate worry is margin erosion, especially if a console is already priced to hit a broad audience. Think of it like running a food truck where the line is long, but the cost of ingredients suddenly spikes. You can sell the same number of tacos and still feel poorer at the end of the day.

Where the cost pressure is coming from

The reported pressure isn’t about one tiny screw getting pricier – it’s about memory, which is a big-ticket ingredient in modern hardware. According to reporting that cited market intelligence, the costs tied to Switch 2 memory components climbed notably within the current quarter, and that matters because memory pricing can move fast when supply tightens. The moment buyers with massive budgets show up – especially large-scale computing customers – smaller buyers can get squeezed, even if they’re famous. Nintendo isn’t alone in living in this world, but it’s in the spotlight because hardware margins are often tighter than people assume. When the bill of materials rises, companies typically juggle three levers: accept lower profit, raise prices, or adjust the product mix. None of those options are painless, and the market tends to punish “uncertainty” more than “bad news,” because uncertainty is harder to model.

DRAM and the 12GB RAM modules

One of the headline numbers in the reporting was the claimed jump in the cost of the Switch 2’s 12GB RAM modules – described as up around 41% in the current quarter. RAM is not a decorative extra. It’s a performance-critical resource, and it’s also one of those components where pricing can swing when demand spikes or supply is redirected. If that increase holds for any length of time, it can change the per-unit cost of every Switch 2 that rolls off the line. That’s why the market reacts so quickly: a percentage increase on a key component multiplies across millions of units. It’s also why investors worry about timing. If the console is in a crucial sales window, Nintendo has fewer “clean” ways to adjust without creating noise in consumer demand. In other words, even if sales stay strong, the profit per unit can still get squeezed.

NAND and internal storage costs

NAND flash is the other half of the story because it underpins internal storage, and internal storage shapes the day-to-day experience of owning the system. Reports described the NAND storage used in the Switch 2 as becoming nearly 8% more expensive, and that may sound modest next to a 41% RAM jump, but it still matters. Storage isn’t just about saving screenshots – it affects how quickly we hit the point where we need external expansion. When internal storage costs rise, manufacturers face a tricky choice: keep the same capacity and eat higher costs, or adjust pricing and risk pushback. On top of that, NAND pricing trends can ripple outward. If NAND gets more expensive upstream, the downstream products that rely on it – including removable storage – can move with it. So even if the console price stays steady, the ownership cost can creep up through accessories and add-ons.

Why microSD Express becomes the hidden bill

The microSD Express angle lands hardest because it’s where “industry pricing” turns into “your wallet.” If the Switch 2 relies on microSD Express for expandable storage, then the market price of those cards matters a lot more than it did in the past. Plenty of us have already lived through the routine: you download a few big games, keep a couple of updates around, grab a new release, and suddenly storage feels like a closet in a small apartment. At that point, expandable storage stops being a luxury purchase and becomes maintenance. Reports tied rising NAND prices to higher microSD Express card pricing, and the argument from analysts was blunt: if storage is effectively required, then the cost is being passed to the player, even if Nintendo doesn’t touch the console’s sticker price. It’s like buying a “great deal” sofa and realizing the delivery fee is where the store makes its money.

Why 256GB feels like a starter pack

If a console’s built-in storage is limited, a 256GB expansion card can feel less like “extra” and more like “breathing room.” Modern games can be chunky, patches can be relentless, and digital libraries tend to grow the way laundry piles grow – quietly, then all at once. That’s why analysts in the reporting framed add-on storage as essential rather than optional. The important detail isn’t that every single owner will buy a card on day one. It’s that the design of the ecosystem nudges many owners toward it over time, especially if we play a mix of first-party and third-party releases. And once that nudge becomes predictable, the accessory market becomes part of the console’s true cost story. Investors notice because accessory and add-on pricing can influence demand, satisfaction, and the pace at which owners buy more games. Storage can be a quiet gatekeeper for everything else.

The $89.99 example and why it matters

An analyst quote highlighted a 256GB express SD card listed at $89.99 on Amazon at the time of reporting, and the specific number matters less than what it represents: a visible, immediate add-on cost that many owners can’t ignore forever. If we’re used to paying far less for earlier generations of removable storage, that sticker shock can change behavior. Some players might delay buying the card, uninstall games more aggressively, or avoid larger downloads. Others might simply factor the card into the “real” price of getting started. That’s where the hidden bill becomes a narrative problem. Nintendo can sell a console at a price that looks competitive, but the moment we add required extras, the perceived value shifts. It’s the same feeling as booking a cheap flight and then discovering the baggage fees, seat fees, and “please breathe air” fees waiting at checkout.

How extra storage changes the real price of games

The reporting also carried a sharp point: if extra storage is needed to comfortably play big third-party releases, then those games can effectively feel more expensive. The example given was that third-party games from major publishers could end up costing around $20 more in practice because the storage requirement pushes us toward buying a card sooner. That doesn’t mean every game magically adds $20 to the receipt, and it doesn’t mean Nintendo or publishers formally raised prices. It’s more like a tax created by ecosystem friction. When we buy the storage, we’re not buying a single game – we’re buying capacity for many games. But the timing of that purchase often gets triggered by one specific release that finally tips the scale. That’s why the “effective cost” framing resonates. The first game that forces the storage purchase becomes the one that feels pricier, even if the storage benefits everything after it.

What this means for Nintendo’s margins

From a margin perspective, the core issue is whether component inflation is temporary noise or a sustained trend. If DRAM and NAND pricing rises are short-lived, Nintendo can potentially ride it out with procurement strategies, production planning, and minor adjustments elsewhere. If the rises persist, every unit sold could carry less profit unless something changes. That’s why investors watch memory pricing with hawk eyes. A console business isn’t just about selling hardware – it’s about building an installed base that buys games, subscriptions, and add-ons. Hardware margins matter because they influence how aggressively a company can market, bundle, discount, or keep supply flowing. If memory costs bite hard, Nintendo might lean more on higher-margin areas, but it still needs the console to stay attractive to buyers who aren’t already die-hard fans. The market reaction reflects fear of a squeeze: higher costs on the way in, but limited flexibility on prices on the way out.

How Nintendo can respond without breaking demand

Nintendo has a menu of responses, but none are as simple as flipping a switch. It can negotiate supply agreements, adjust production timing, or optimize internal configurations over time, but those moves don’t always show up instantly in quarterly numbers. It can also shift value perception without changing the base console price, using bundles or pack-ins that make the total package feel better even if costs are rising behind the curtain. Another lever is accessory pricing, though that’s risky when storage already feels like a sore spot. The key is protecting demand while defending profitability, which is like trying to hold an umbrella in a windstorm: you can do it, but you’re going to get wet somewhere. The market tends to punish the uncertainty phase before a strategy becomes clear. Once Nintendo signals how it plans to handle cost pressure, the story can stabilize, even if the answer isn’t perfect.

What players can do right now

While stock charts do their thing, we still have to manage our libraries, budgets, and patience. If microSD Express pricing is volatile, the most practical move is treating storage like a purchase you plan, not a purchase you panic into at midnight when a download fails. Watching for promotions, retailer sales windows, and reputable brands can soften the blow, and even modest discounts can matter when the baseline price is high. It also helps to be intentional about installs: keep what you actually play, archive what you don’t, and don’t let “maybe someday” games camp in storage like permanent houseguests. If we know a big third-party release is coming, that’s the moment to think ahead rather than scrambling later. None of this fixes the underlying pricing forces, but it keeps us in control of the one part of the system we actually own: our spending choices and how we use our space.

Conclusion

Nintendo’s share dip reflects a classic market fear: rising input costs that could squeeze profits right when demand expectations are high. Reports pointing to higher DRAM costs for 12GB RAM modules and a jump in NAND storage pricing help explain why investors flinched, because those components scale across every console produced. The sting doesn’t stop at the factory either. If microSD Express is the practical path to expansion, then rising storage card prices can turn into a visible add-on cost for players, shaping how expensive the Switch 2 feels in everyday life. The big takeaway is not panic, but clarity. Memory and storage pricing trends can move quickly, and the balance between margin protection and consumer-friendly pricing is delicate. In the meantime, being intentional about storage purchases and install habits can help us avoid the worst “surprise bill” moments while the broader market figures out where memory pricing settles next.

FAQs
  • Why did Nintendo’s shares fall in the reports?
    • Reporting linked the dip to concerns that rising Switch 2 component costs, especially memory, could reduce profit margins and raise pressure on pricing decisions.
  • What components were reported to be getting more expensive?
    • The reporting focused on DRAM for the Switch 2’s 12GB RAM modules and NAND flash used for internal storage, both of which were described as rising in cost.
  • Why are microSD Express cards part of the story?
    • If microSD Express is the primary way to expand storage, then higher card prices can become a real ownership cost, even if the console’s sticker price does not change.
  • Does the $89.99 price mean microSD Express always costs that much?
    • No. The $89.99 figure was cited as an example at the time of reporting, and retail prices can fluctuate with supply, promotions, and region.
  • How can we reduce the storage pain without buying huge cards immediately?
    • We can plan purchases around sales, use archiving and uninstalling more actively, and avoid keeping rarely played games installed just because they might be played later.
Sources
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