Nintendo’s value drops by $14 billion due to rising memory prices

The accelerated pace of sales of the Switch 2 has not been enough to reassure Nintendo investors, who are concerned about the current production market for hardware components – especially memories. This has resulted in consecutive drops in the value of the Japanese giant’s shares, which have already lost a total of US$14 billion in value on the stock exchange.

The number was reached with the most recent drop, of 4.7%, which happened yesterday. The number marked the seventh day of falls among eight on the exchange operating in December. A large part of the shareholders’ backlash comes from the prices of memories that continue to grow. There are reports that the 12GB that Nintendo ordered for the Switch 2 would have increased its price em 41%.

The exact number on the price increase for DRAM modules in the Switch 2 has not yet been confirmed, but some increase is almost certain due to the current market situation. If the 41% is confirmed, we can bet on a price increase for the console for consumers happening soon, which is part of what concerns Nintendo’s shareholders.

Could a shortage of other chips affect Nintendo?

At the moment, the memory market is the one that has been most affected by companies’ appetite for AI accelerators, but saturation is expected to also reach the CPU and GPU manufacturing segment.

However, AI processors mainly use more advanced lithographs, while the Tegra239 that powers the Switch 2 uses more mature manufacturing processes.

Manufacturers are racing to increase their production capacity for advanced chips and may revert more facilities to their production, reducing the volume of semiconductors available for products such as Nintendo’s console.

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This ends up affecting the end consumer, who will probably not only pay more for the Switch 2 in 2026, but will also have to spend a lot more if they want to buy a microSD to expand their storage.

Fonte: Bloomberg
Via: Insider Gaming