Soaring memory prices driven by the AI boom have forced Nintendo and Sony to raise gaming device prices significantly, with costs forecast to remain elevated well into next year.
Nintendo and Sony have both flagged surging memory chip prices as a major threat to their gaming businesses, with artificial intelligence data centre demand doubling chip prices in the first quarter alone and forecasts pointing to a further 63% rise in the current quarter.
Nintendo confirmed higher component costs would add roughly 100 billion yen ($638 million) to annual expenses, directly influencing its decision to raise the Switch 2 price by $50 to $499.99 in the United States. Sony separately raised PS5 prices by $100 to $649.99.
Sony CEO Hiroki Totoki warned that high memory prices are expected to persist into next year, with the company actively seeking alternative cost reductions. Both companies’ shares have faced sustained pressure amid ongoing supply chain disruptions.
NEWS NOW:
- Obama on Iran: “We pulled it off without firing a missile. We got 97% of their enriched uranium out…
- Identity of France’s Third-Choice Goalkeeper for World Cup in Doubt; Lens’ Robin Risser Could Be Called Up
- Vice-president vows internal pressure at Grêmio to turn things around
- Everton should have got penalty for Fernandes handball – Webb
