Nintendo faces $14b market hit over memory chip concerns

Nintendo has lost about US$14 billion in market value in December as its shares fell in seven of the past eight trading days amid concerns over a memory chip shortage.

The Switch 2, Nintendo’s latest console, is facing higher component costs due to rising NAND memory prices, with PC makers Dell and HP also warning of possible price increases next year.

Pelham Smithers, an analyst, says the limited built-in storage of the Switch 2 makes external SD cards necessary, effectively raising game costs for consumers.

A 256GB express SD card now sells for US$90 on Amazon.

Discounting of the Switch 2 began earlier than expected, with the console-and-game bundle offered at a US$50 markdown during Black Friday.

🔗 Source: Bloomberg

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NAND shortage may persist through 2026, squeezing Switch 2’s profit margins

Chipmakers Samsung/SK hynix/Kioxia/Micron cut NAND output in H2 2025; SK hynix trimmed about 10% 1.
Inventories at memory module firms last into Q1 2026, with some empty by March, which industry sources call the toughest scramble for NAND in nearly a decade 2.
Demand in 2026 could grow 20–22% year over year while supply rises only 15–17%, widening the gap 3.
No new capacity is on the books at Samsung or SK hynix or Micron 2. Caution after years of volatility keeps supply tight.
TrendForce sees NAND Flash contract prices climbing 5–10% in Q4 2025, with gains likely to continue into 2026 3.

Storage brands can capture Switch 2’s microSD Express opportunity with targeted bundles

Switch 2 only supports microSD Express, a faster, newer variant that costs more than regular microSD 4.
Built-in storage is 256GB, and regular microSD cannot expand it, so most buyers need microSD Express 5.
Lexar offers up to 1TB, SanDisk sells 256GB or 512GB, and Samsung has an official Nintendo 256GB card for Switch 2 4.
Retailers can offer bundles that pair microSD Express with game vouchers, capturing attach sales (add-on accessories sold alongside the console) while easing upfront spend.
Target 512GB as the sweet spot to balance price sensitivity with room, since Switch 2 games may grow beyond first-gen sizes.