Published: 09:52 AM, 09 May 2026
Sony, Nintendo grapple with memory price surge as AI boom constrains supply
Nintendo and Sony both ?flagged the impact from surging memory prices on their games businesses on Friday, as the artificial intelligence boom constrains chip supply and deepens disruptions across the tech sector. Memory chip prices doubled in the first quarter alone from the previous quarter and are forecast to climb up to 63% in the current quarter due to AI data centre demand that has impacted supply for smartphones, laptops and automobiles. While top producers Samsung, SK Hynix and Micron have pledged to boost output with billions of dollars of investment, it takes at least a year for a new production line to come online, experts say. "Super Mario" maker Nintendo said that higher component costs, particularly memory, and the impact of tariffs is expected to ?add roughly 100 billion yen ($638 million) to costs in the current financial year. President Shuntaro Furukawa said the higher component costs, along with factors including exchange rates, were reflected in Nintendo's decision to hike prices ?of its Switch 2.
The price of a Japanese language Switch 2 Japan model will go up by 10,000 yen to 59,980 yen, with the gaming device in the U.S. to cost $50 more at $499.99. With the price hikes, profitability will be roughly unchanged from last financial year.
Furukawa told an earnings briefing.
Sony announced in March it would increase prices of the PS5, with the standard version of its gaming device jumping $100 to $649.99 in the U.S.
>>Reuters
