Nintendo's Switch 2 now costs $50 more in the United States, and rising memory costs are a key reason.
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The console's suggested retail price rose from $449.99 to $499.99 on Sept. 1, an increase Nintendo first announced in May. The price does not include sales tax.
The "Choose Your Game" bundle, which included a game at the old $499.99 price, ended on Aug. 31. The cheapest new bundle costs $529.99.
AI Is Driving Up Memory Costs
Nintendo President Shuntaro Furukawa named the global memory shortage driven by artificial intelligence as the largest factor behind the increase, ahead of exchange rates and oil prices. He said the higher price still will not cover all of the added costs, which Nintendo estimated at about 100 billion yen, or roughly $600 million.
The Switch 2 runs on 12 gigabytes of memory. Samsung, SK Hynix and Micron make more than 95% of the world's DRAM, and they have shifted production toward high-bandwidth memory for AI data centers. That leaves less supply, at higher prices, for consoles, phones and computers. Because those data-center orders are large and steady, the chipmakers have little reason to shift capacity back to consumer products.
When Memory Is a Design Constraint
The shortage has made memory one of the costliest parts of a console. Some game makers have long treated it the other way, as a limit to design around.
The annual js13kGames competition, held from Aug. 13 to Sept. 13, requires every entry to be a browser game no larger than 13 kilobytes when zipped. That is roughly one-millionth of the memory in a Switch 2. Byte limitations, of course, led to simple games. One 2021 entry, developer Bruno Croci's idle game Spacebar Clicker, is now on the web gaming platform Poki. The idea is simple: press the spacebar as fast as you can.
Prices Are Up Across the Board
Console makers have no such option, and every one of them is paying the memory bill. The PlayStation 5 disc console now costs $649.99, the Xbox Series X has gone from $499.99 to $799.99, and Valve's 512GB Steam Deck OLED climbed from $549.99 to $789.99.
Buyers are pulling back. Circana data showed U.S. spending on console hardware fell 29% in July to $282 million. Circana's Mat Piscatella called the Switch 2 increase "a further headwind for the market heading into the second half of 2026."
The Outlook
Relief is not close. Analysts from Gartner, Intel and Silicon Motion do not expect memory prices to ease before late 2027 or 2028. By then, today's consoles will be well into their life cycle, leaving the higher prices in place through most of the hardware's prime selling years.
That means holiday shoppers are unlikely to see console prices fall this year. Even the least expensive current consoles that play on a television, the Switch 2 and Xbox Series S, now start at $499.99.
For now, the squeeze on console prices is coming from outside gaming, and it is not letting up. With memory demand tied to the AI build-out and supply held by a handful of manufacturers, the increases seen this year look less like a passing spike than a new floor for what current hardware costs. Until chip production catches up, anyone buying a console is buying into a market that has moved up and is expected to stay there.
Should I Buy a Console Now or Wait for a Deal?
It depends. The ongoing shortage makes it quite hard to predict future pricing. If you're planning to buy a disc console, consider how soon you want to play and how much you're willing to spend.
Waiting for a sale might save you money, but there is no guarantee. It might be better to:
- Buy pre-owned games
- Resell physical copies after using them to recover some money
- Keep using your current console if it still runs your favorite games
Try to keep an eye on retailer promotions, too. They sometimes offer bundles at a lower price than what you would pay when buying each game individually.
The Memory Shortage Effect: Rising Hardware Costs Will Change Gaming Habits
Higher console prices could affect more than hardware sales. As a player, you'll find yourself being more careful about:
- How you spend your gaming budgets
- The games you choose to buy
- How long you keep your current devices
Now that the console market has changed significantly, you might have to limit the amount you spend on things like accessories. If you had plans to buy a Switch 2 and several new games, you might purchase the console first and delay the other purchases.
Another player might shift to an online gaming platform instead of spending more money on a new console.
Console Makers and Other Industry Players Are Already Feeling the Effects
Players have already started being more sensitive about their gaming budgets. This is affecting developers and publishers. They are finding it harder to promote new products. Some are even changing their publishing plans to assess the market first.
Charging higher prices won't necessarily cause people to stop gaming. They may become more selective about when they upgrade and what they spend their money on. Console makers have to show buyers why they should buy their products even though the prices are now higher.
Buyers will also take a bit more time to decide because they might want to compare options. If you're an industry player, the best way to stand out is to give people value for their money. A few extra features or accessories might convince someone hesitant at first to purchase.
Understand What the Memory Shortage Issue Means for You
When shopping for your next console, you'll likely spend a higher amount than what you anticipated. Most of the memory that publishers would buy is now being used by data centers. Instead of giving up your hobby due to the memory shortage issue, consider browser games.
Keeping your current hardware in the meantime can also be a good option. You'll keep enjoying the games you love as you wait for better deals to come along.
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