Japan’s Nintendo and Sony face memory price pressures

Published Fri, Jan 30, 2026 · 11:45 AM

NINTENDO and Sony Group will face scrutiny over how soaring memory chip prices driven by AI demand have affected their game console profitability when they report earnings next week.

The results will reveal whether the two Japanese gaming giants can maintain strong performance despite cost pressures, with Nintendo’s Switch 2 showing robust sales momentum while Sony’s five-year-old PlayStation 5 may have benefited from a cheaper Japanese-language only version introduced to compete directly with Nintendo.

Data from US market tracker Circana showed that Switch 2 sales remained strong, with the console being the best-selling video game hardware in the US in 2025. Jefferies noted that the narrative of a “weakening Switch 2 has been dismantled” by that data.

Sony also announced plans to spin off control of its home entertainment business, including the flagship Bravia brand, to a joint venture with China’s TCL Electronics Holdings. It might signal wider restructuring and closer focus on its more profitable segments, Bloomberg Intelligence said. REUTERS

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