Sony and Nintendo have been impacted by the same problem that has affected smartphones, laptops, and automobiles globally. The surging demand for artificial intelligence (AI) is now hitting gamers in the wallet, as both Japanese giants have warned that a massive increase in memory chip prices is driving up manufacturing costs, forcing them to raise prices on their consoles.
Global Chip Shortage Hits Gaming
According to a report by Reuters, the issue stems from a worldwide chip shortage caused by the rapid expansion of AI data centers. These facilities require enormous amounts of memory, leaving fewer chips available for other industries, including smartphones, laptops, automobiles, and now video game consoles.
Prices Double in Months
The scale of the cost increase is hitting consumer electronics hard. Memory chip prices doubled in the first three months of 2026 alone and are expected to climb another 63% this quarter, the report said. While major chipmakers like Samsung and Micron are spending billions to increase production, experts warn it takes at least a year for new factories to become operational.
Nintendo Hikes Switch 2 Prices
Nintendo President Shuntaro Furukawa confirmed that surging component costs and a weak exchange rate led to the difficult decision to raise the price of the new Switch 2. The Switch 2 will now cost $499.99, a $50 increase, and the price in Japan will jump by 10,000 yen to nearly 60,000 yen. Nintendo expects these component price hikes to add roughly $638 million to its expenses this year. To keep fans engaged, experts say Nintendo is now under more pressure than ever to release blockbuster games like the upcoming Star Fox and the recent hit Pokemon Pokopia.
Sony Also Feeling the Heat
Sony is not immune either. The company recently increased the price of the PlayStation 5 standard version by $100, bringing it to $649.99 in the US. Sony CEO Hiroki Totoki noted that while the company has secured enough memory for this year, they expect high prices to persist through 2027. Sony is now looking for ways to cut costs in other areas to protect its profit margins. Despite the hardware struggles, Sony is anticipating a massive financial boost from the scheduled November release of Grand Theft Auto VI, which is expected to drive record-breaking sales and engagement.
