Nintendo Says RAM Price Increase Has No Impact on Company Revenue
JAKARTA - Nintendo President Shuntaro Furukawa said that the rising global RAM prices did not directly affect the company's revenue. However, this situation is still considered to be monitored.
Furukawa explained that the profit of its hardware business is highly dependent on the conditions of component procurement and mass production efficiency. In addition to material prices, currency exchange rates and international tariff policies are also determining factors in their revenue.
However, when asked about the possibility of future console price increases, Nintendo declined to answer. Until now, the price of the Nintendo Switch 2 has remained stable since last April. Furukawa plans to maintain the price while continuing to monitor the market.
"Although it is difficult to accurately measure the future impact, our basic policy is to recognize tariffs as costs and pass them on to prices as much as possible," Furukawa said, launching from PC Mag on Wednesday, January 14.
This price adjustment policy does not only apply to the US market, but also to other global markets. Currently, Nintendo is trying to maintain the popularity of its new devices while considering the various economic risks that they may face in the future.
"On the other hand, this is an important period for our gaming business as we push for the adoption of new hardware and maintain the momentum of our platform. We are working on it while carefully considering the situation," added Furukawa.
In November, Nintendo management was optimistic that the increase in material costs could be suppressed through ongoing mass production efforts. They hope that manufacturing efficiency can offset the current surge in memory component prices.
Analysts advise prospective buyers to consider purchasing the console early to avoid potential future price increases. This is because Nintendo's competitors such as PlayStation and Xbox have adjusted the prices of their products.