The global artificial intelligence boom continues to consume chip supplies, creating a massive supply crunch for consumer electronics.
Memory chip costs doubled during the first quarter as data centers prioritize hardware for high-performance AI processing.
Nintendo expects these component spikes and trade tariffs to add 600 million dollars in costs this fiscal year.
President Shuntaro Furukawa confirmed that these rising expenses necessitated the recent price hike for the Switch 2.
The company now faces pressure to release first-party blockbusters to justify higher hardware costs to price-sensitive fans.
Sony also increased PlayStation 5 prices recently to maintain profitability while securing its essential hardware components.
Management at Sony currently seeks alternative ways to reduce manufacturing costs outside of the expensive memory market.
Both giants expect high-margin software releases like Grand Theft Auto VI to bolster their long-term financial health.
