Nintendo’s Profit Disappoints Even as Memory Prices Climb (2)

Nintendo Co.’s profit rose a smaller-than-expected 23% after the US levied tariffs on the Switch 2 console, revealing a big hit to margins while concerns grow about the impact of soaring memory chip prices in 2026.

After a record-setting summer debut for the Switch 2, the Kyoto-based company is grappling with global disruptions from US tariffs. Sales at home, where Nintendo priced its device low to hook consumers, took up a bigger proportion of business during the holiday quarter.

Longer-term, the Japanese company faces surging memory prices that threaten the gadget’s already razor-thin margins. While most major electronics makers, ...