RAM shortage will force Nintendo to raise the cost of Switch 2 — in a short time the company lost $14 billion in market capitalization

The global RAM shortage is not abating and is forcing many companies to resort to unpopular measures. We have already reported that due to the market situation Microsoft may raise the price of Xbox Series consoles for the third time this year, and now analysts predict that Nintendo may face the same necessity.

What's known

Bloomberg noted that against the backdrop of the RAM shortage, Nintendo’s stock price is rapidly declining, having already reached May levels and continuing to fall. Thus, the Japanese company lost $14 billion in market capitalization.

The reason is simple: according to TrendForce, the cost of RAM chips used in Switch 2 has increased by 41%, and NAND memory by 8%. Such a rise in component prices does not allow hope that the popular hybrid console will not become more expensive in the near future.

The most foresighted in this situation is Sony, which purchased a huge batch of RAM and does not yet notice the RAM market crisis.

Source: Bloomberg