AI triggers price hike for Nintendo Switch 2 gaming consoles, Sony says not ...

Sony and Nintendo have been impacted by the same problem that has hit smartphones, laptops and automobiles globally. The demand for artificial intelligence (AI) is hitting gamers in the wallet as both of the Japanese giants have warned that a massive surge in the price of memory chips is driving up manufacturing costs, forcing them to raise prices on consoles.According to a report by news agency Reuters, the problem stems from a global chip shortage caused by the rapid expansion of AI data centres. These facilities require massive amounts of memory, leaving less supply for other industries like smartphones, laptops, automobiles and now, video game consoles.The scale of the cost increase is hitting consumer electronics hard because 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 start running.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 interested, 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 isn’t immune either as 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.