[Bloomberg] Nintendo Sheds $14 Billion Value After Chip Squeeze Fears Grow

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The Kyoto-based gaming pioneer faces rapidly rising memory costs, which threaten to impair margins for its popular new Switch 2 console and potentially also curb market demand as accessory costs also rise. The price Nintendo has to pay for the 12GB RAM (random access memory) modules in the Switch 2 jumped 41% in the current quarter, according to market intelligence firm TrendForce. The NAND storage aboard the new console also became nearly 8% pricier, with that cost bump also affecting add-on storage cards.

Another cautionary note for Nintendo comes from the earlier-than-expected discounting of its new console. The Switch 2 started out selling faster than any other games console in history. But there's uncertainty about whether it can sustain that popularity, particularly with gamers beyond its loyal fan base.

"One of the surprises around Black Friday was seeing the Nintendo Switch 2 + Mario Kart World bundle being offered online at a $50 discount – which essentially meant that you got the Mario Kart game for free," Smithers said. "You wouldn't expect it to be discounted this close to the holiday season."

https://www.bloomberg.com/news/arti...4-billion-value-after-chip-squeeze-fears-grow
 
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