Sony, Nintendo warn AI-driven chip shortage is pushing up gaming costs

Sony and Nintendo have warned that surging memory chip prices are increasing costs for their gaming businesses, as the global artificial intelligence boom tightens supply across the semiconductor industry.

Memory prices reportedly doubled in the first quarter compared with the previous period and are expected to rise further due to strong demand from AI data centres, which is also affecting availability for smartphones, laptops and cars, Caliber.Az reports, citing Reuters.

Major chipmakers, including Samsung, SK Hynix and Micron, have announced plans to expand production, but analysts say new manufacturing capacity typically takes at least a year to come online.

Nintendo said higher component costs—especially memory—along with tariffs will add around ¥100 billion ($638 million) to expenses this financial year. The company has already raised prices for its Switch 2 console in several markets, including Japan and the United States, citing increased input costs and currency pressures.

Sony also increased PS5 prices earlier this year and expects continued pressure from high memory costs, though it forecasts higher profits despite lower sales in its gaming division.

The company said it has secured enough memory supply for this fiscal year but warned that prices are likely to remain elevated.

Both companies are under pressure as investors worry that supply chain disruptions linked to the AI-driven chip shortage and broader geopolitical tensions could weigh on margins in the electronics sector.

Nintendo expects sales of 16.5 million Switch 2 units this year, down from 19.9 million for the previous model, while also forecasting 60 million software unit sales.

Sony, meanwhile, is banking on strong software performance and upcoming major game releases, including the delayed “Grand Theft Auto VI,” which analysts say could significantly boost engagement and revenue across its PlayStation ecosystem.

By Bakhtiyar Abbasov