Nintendo is working to “ensure a stable supply of memory components” in view of the sharp increase in memory prices. At a recent press conference, the President of Paradise, Juntaro Kogawa, stated that, although the price increase had been “at a faster rate than anticipated”, it “has not had a significant impact on the third quarter hardware profit margin” and that performance was not expected to be affected in the fourth quarter.
However, Juntaro Kogawa did not rule out the possibility of future price increases, acknowledging that “this may put pressure on profit margins”. “Any decision to adjust the price will take into account not only profitability but also the platform’s capacity, sales trends and market environment,” he said. “If memory price increases last longer than expected, they may begin to affect hardware profitability. At that time, we will study the factors to determine how to proceed.” It also referred to the fact that Switch 2 performed better in the Japanese market than in other regions, noting that its trend was “better than expected” driven by the Z-A, Switch 2, and Kabi’s holiday season sales. “We believe that Japanese users see these works as an opportunity to transition to Switch 2 and have a relatively high rate of conversion compared to Switch users in Nintendo outside Japan.”
Guchuan commented on the impact of large-scale updates of the Switch game on the new host in response to the Gathering of Animal Forest Friends and Jet Warrior 3. “The regular release of new works is necessary to increase the capacity of new hardware,” Guchuan explains. “Moreover, we believe that in the transition from Switch to Switch 2 in the coming years, it is essential to maintain contact points with consumers active on our platform.” He said, “We want to create such a flow by launching updates to the Gathering! The Animal Forest Friends and the Jet Soldiers III, which are very well sold on Switch: As consumers continue to play upstream of Switch, the transition to Switch 2 will occur once new publications that attract them are released. From this point of view, it is important to issue an update of Switch software with a large capacity to maintain user activity and encourage continuous play.”
In its latest financial report, Nintendo achieved net sales of 1.9 trillion yen and business profits of 30.4 billion yen over nine months as of 31 December 2025. Switch 2 since its sale in June 2025 had a cumulative sales volume of 1.73 million, of which 7 million had been sold within three months of 31 December 2025.
