While Nintendo Switch 2 has been a massive success since its launch, reaching over 17 million units sold by the end of last year, the same hardware that makes the console powerful is now becoming a bottleneck for players (via Bloomberg).
Companies around the world are buying up massive amounts of NAND flash memory and DRAM to build AI servers, resulting in a global memory shortage. For the Nintendo Switch 2, which comes with 256GB of internal storage, expanding that memory is therefore becoming much more expensive for the average person.
While 256GB sounded like a lot compared to the original Switch, modern games are significantly larger. Titles like Donkey Kong Bananza now take up over 50GB, while third-party games such as Cyberpunk 2077 can require 75GB or more. If you install just a few major titles, your console is effectively full.
To make matters worse, the Nintendo Switch 2 uses a newer type of storage called microSD Express. These cards are faster and help games load quickly, but they are also caught in the middle of the price hike. A 256GB expansion card that used to be affordable now costs around $85 or $90 in the U.S. This is a 30% increase in price since the console first hit shelves.
Industry analysts are beginning to worry that this “memory crisis” will change how people buy games. Currently, the average number of games purchased per console is lower for the Switch 2 than it was for its predecessor. Many gamers are hesitating to buy a new title if they know they will have to spend another $100 on a memory card just to play it.
Pelham Smithers, a well known equity analyst, described the situation in blunt terms. He said: “The company appears to be looking at an absolute horror show on the cost of building a console, unless memory prices come down sharply.” He also noted that “This is a memory problem, and it’s only getting nastier with every dollar the price goes up.”
Nintendo President Shuntaro Furukawa has addressed the volatility of the market during recent talks with shareholders. He stated: “We procure from suppliers based on our medium- to long-term business plans, but the current memory market is very volatile.” While the company has not yet raised the $449 price of the console itself, Furukawa admitted that they are watching the situation closely.
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Am I misunderstanding something? This article is suggesting that the price of a memory card increasing from $70 USD to $90 USD constitutes a “crisis”? What a charmed life one must have lead if this is what amounts to a crisis.
Yes, you’ve misunderstood. Try reading the article again.