Nintendo Switch 2 Lite Could Be the Answer to Rising Prices

With memory shortages expected to continue through 2028 and hardware costs climbing across the industry, Nintendo may need a cheaper Switch 2 model to keep its latest console affordable.

Nintendo may be making major adjustments to its Switch 2 hardware lineup, as rising memory prices and ongoing supply issues put consoles at risk of becoming increasingly expensive. The Switch 2 already costs $500, and fears are growing that Nintendo will struggle to keep its flagship system affordable over the next couple of years.

One option could be a Nintendo Switch 2 Lite, a cheaper, handheld-only version that might help the company reach a wider audience. Recently, the idea of a Switch 2 Lite has been floating around amid talk of a potential new chipset from Samsung. Nintendo has said nothing official about another Switch 2 model, but the purported specs of Samsung’s next technology have raised suspicions that a cheaper revision could be coming. 

Much of the talk centers on Samsung’s upcoming 8LPU Plus manufacturing process, which is rumored to include advancements that could make it a good fit for a possible Switch 2 Lite system-on-chip. Nintendo Patents Watch noted that the proposed method could offer roughly 12% higher performance, 15% lower power consumption, and an 8% smaller chip footprint than the current production process. These advances could let Nintendo make a more efficient version of its current hardware while potentially cutting production costs.

But that the chipset has anything to do with Nintendo is just speculation.

Samsung has not officially confirmed that it is developing its 8LPU Plus technology exclusively for a Switch 2 Lite. However, it's worth looking at the possibilities, especially given the increased pressure on Nintendo to limit device prices. The biggest threat facing Nintendo over the next few years is the rising cost of producing electrical products.

DRAM is used throughout the technology industry, and demand from artificial intelligence companies and data centers is adding more pressure to an already stretched memory supply. Of course, this isn’t only a problem for Nintendo. Sony, Microsoft, and other device makers are all struggling in a tough market.

If component prices keep rising, it could be even harder to keep the Switch 2 at its current price of $500. Some speculate that Nintendo may raise the console price to roughly $550 or even $600 by the end of 2027. But while these numbers are still forecasts, not concrete plans, another price rise will make the system far less accessible to consumers.

A Switch 2 Lite offers Nintendo a different option. The original Switch Lite showed the company’s ability to cut functionality, streamline the hardware, and offer a cheaper option without abandoning the core console family. Nintendo could pursue a similar path with its new system by ditching the detachable Joy-Con controllers, simplifying the internal layout, and shrinking the display.

The handheld is expected to have a screen size of roughly 6.2 inches, making it smaller and more portable than the regular Switch 2.

It would also likely ditch TV docking, in keeping with the original Switch Lite's ethos. Nintendo may be able to lower manufacturing costs and make a smaller gaming device by removing the docking hardware and detachable controller mechanics. If the original Switch 2 sells for $550, a Switch 2 Lite might realistically debut for approximately $399.

That would still be far more expensive than the original Switch Lite, but it would give buyers a lower entry point into Nintendo’s current generation. Another possibility being discussed is a fully digital Switch 2 Lite. Dropping the physical cartridge slot could let Nintendo cut manufacturing costs further and sell the device for around $300 to $350.

That, meanwhile, could hurt Nintendo’s typically strong physical game business. Nintendo has continued to produce physical games through the Switch 2 generation, with most titles coming on cartridges with the game data on them. A fully digital handheld could be contentious, since many people still want to own a physical copy.

Storage capacity would also be a significant concern. The regular Switch 2 has 256GB of internal storage, and the system's 12GB of RAM is a crucial hardware requirement Nintendo would likely keep. Cutting internal storage to 128GB may help cut costs, but it could cause more headaches for users.

Some recent games already require a lot of storage, and big releases could quickly fill much of the available capacity. Players may therefore need to purchase additional microSD Express storage cards- an additional cost on an already pricey buy. So it makes more sense to keep the 256GB storage capacity, even if Nintendo has to find other ways to lower production costs.

The situation is considerably more worrying if you look at the memory market as a whole. With big corporations competing for available supplies, DRAM shortages are hitting consumer gadgets, PC hardware, and other technology products. Recent comments from OpenAI CEO Sam Altman further underscored the mounting strain on DRAM supply by highlighting the wasteful allocation of consumer memory.

From a global allocation standpoint, Altman contended, it is inefficient to have vast quantities of memory sitting unused on individual machines, and cloud infrastructure could use scarce resources better. This has been challenged, however, by consumers who want to keep powerful local hardware rather than depend on cloud-based services for everything.

Another sign of how bad things have gotten is the escalating cost of PC components.

DDR5 memory is shooting over the roof, with a 16GB kit supposedly spotted at about $230 in a promotional offer in November. Adding to the woes, graphics cards are also facing availability and cost issues, making it much more stressful for those trying to upgrade their rigs. It seems that the RTX 5080 from Nvidia has been getting harder and harder to find through its official US marketplace. 

Third-party variants have shown up at substantially higher prices, with some listings going up to $2,000 to $3,500 even when the graphics card launched at a $1,000 MSRP. There are also rumors Nvidia may release a 24GB version of the RTX 5080. More memory would be a draw for fans, but it might also mean even more competition between gamers and those constructing powerful local artificial intelligence systems.

High-capacity memory models are tempting for consumers who want to run more capable language models locally, potentially boosting demand and making already expensive graphics cards even harder to buy. 

Sorry to say, things may not improve anytime soon. Samsung has warned that memory shortages could last until 2028, as big clients lock up large shares of available capacity through long-term contracts. Data centers use vast amounts of memory, especially the high-bandwidth memory used in state-of-the-art artificial intelligence infrastructure.

This puts consumer hardware producers in a tough position. Memory and other component makers have a strong financial incentive to favor large corporate customers over more typical consumer items. That might mean higher production costs for gaming consoles, graphics cards, and other gadgets.

This makes developing a cheaper hardware solution extremely critical for Nintendo. If manufacturing costs rise, the company can’t keep the Switch 2 at its current price. You could also massively subsidize the hardware, but Nintendo has always been a company that likes to make money on its console business, rather than taking a massive loss on every unit sold.

A more sustainable approach would be for Nintendo to release a Switch 2 Lite, allowing them to sell a cheaper product without sacrificing too much from the primary system.

The timing might also be especially good if Nintendo launches the tablet during a major Pokémon release. The Pokémon games have always been tied to portable gaming, with users interacting with each other and trading. That audience might be complemented by a smaller, cheaper Switch 2 aimed mostly at handheld play, giving Nintendo another chance to grow its hardware sales.

Nintendo has not officially announced a Switch 2 Lite, and the enhancements to Samsung’s chipset don’t suggest a new system is in development. But the memory crunch is developing, and the idea is becoming more enticing. With hardware prices rising and shortages expected to endure until 2028, Nintendo will have to get inventive to make its newest system available to buyers. One of the company’s most practical options as it heads into the fray could be a cheaper handheld-only device.