Nintendo Switch 2 storage costs rise as NAND prices surge

Rising NAND flash prices are pushing up microSD costs and squeezing demand for games on Nintendo’s Switch 2, threatening Switch 2 software sales that help offset thin console margins.

Research firm TrendForce says NAND contract prices could surge as much as 90% this quarter after a rise of more than 30% in the prior quarter, driven in part by AI hardware demand.

Bloomberg calculations from Nintendo filings show Switch 2 sales hit 17.37 million units by end-December, while average games bought per console was 2.18 compared with 3.88 for the original Switch at a similar hardware milestone.

Game file sizes are growing, and Final Fantasy VII Rebirth is estimated to require about 102.5GB on Switch 2, roughly 40% of the console’s 256GB internal storage.

Nextorage lists compatible 256GB microSD Express cards at ¥13,350 or about US$85, roughly 30% above June levels, and Bloomberg reported, citing an unnamed memory-maker official, that Nintendo is selling own-brand cards supplied by Samsung Electronics Co. and SanDisk Corp. at roughly half the going market price after winning concessions from retailers.

Analyst Pelham Smithers, managing director at Pelham Smithers Associates, warned that if Switch 2 is seen mainly as a vehicle for Nintendo titles, third-party support could wane, and Nintendo shares are down nearly 30% from their level on the eve of the console’s launch.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Memory costs are squeezing margins more than storage

Attention on NAND flash for storage cards overlooks a larger cost issue for Nintendo.
The console’s 12GB of DRAM jumped 41% in price last quarter, while its 256GB of NAND rose 8% 1.
DRAM costs about ten times more per bit than NAND, which puts added strain on hardware margins already described as thin.
Demand from AI data centers has tightened the memory supply, which leaves room for a Switch 2 price hike. Niko Partners floated a $499.99 option that drops the $449.99 base model, though president Shuntaro Furukawa has not confirmed any increase 2.

Switch 2 could push microSD Express into the mainstream

Nintendo’s move to require microSD Express reaches beyond price tags.
SD Express launched in 2018, yet compatible host devices have stayed rare. Switch 2 stands out as the most prominent adopter so far 3.
That visibility has encouraged several manufacturers to sell microSD Express cards, with 256GB models dropping to $39 during sales 4.
Rather than using a proprietary format like Sony’s PlayStation Vita memory, Nintendo picked an open standard that supports multiple third-party brands. Its scale may boost competition and help the format spread beyond gaming, though that outcome remains uncertain 3.