Every major gaming console in North America has gotten more expensive over the past year, and Nintendo's latest move shows no signs of the trend slowing down. The company announced a $50 price hike on the Switch 2, bringing its MSRP to $500 when the increase takes effect on September 1st.

The culprit behind the price increases across the board is a persistent shortage of RAM chips that began in 2024. That shortage has expanded to affect other critical components like motherboards. The root cause traces back to aggressive investment in AI data center infrastructure—much of which has faced delays or outright cancellation. Those data centers have monopolized the supply of essential electronics components, leaving console makers and other manufacturers scrambling.

The impact extends beyond major consoles. Portable gaming devices have been hit especially hard, with options like the Lenovo Go and ROG Ally now retailing for as much as $1,600. Even Valve's Steam Deck remains difficult to find months after its latest stock drop.

Nintendo's timing deserves some consideration. The company announced the price hike months in advance, giving consumers until September to purchase at the current $450 price point. That's notably different from snap decisions that catch buyers off-guard. Additionally, Nintendo held off longer than its competitors; the Switch 2 launched amid trade tariffs and manufacturing challenges, yet the company managed to keep prices reasonable initially by bundling costs into accessories rather than the base console.

While $500 stings for a gaming device, it remains competitive compared to the alternatives. The PlayStation 5 and Xbox Series X|S both cost more despite being six years old. Nintendo also resisted adding an OLED screen at launch—a choice that would have pushed prices higher still—to maintain accessibility.

The shortage situation shows no signs of immediate improvement, suggesting console makers will continue facing pressure to raise prices or absorb manufacturing costs. For now, customers considering a Switch 2 have all summer to decide whether they'll grab one before the price climbs.