Nintendo, Sony Raise Console Prices as PS5 Nears $900 and AI Chip Costs Bite
Updated
Updated · Financial Times · Jun 19
Nintendo, Sony Raise Console Prices as PS5 Nears $900 and AI Chip Costs Bite
3 articles · Updated · Financial Times · Jun 19
Summary
$900 PlayStation 5 pricing and higher Nintendo console prices are squeezing demand, with Nintendo shares down nearly a third this year and Sony off 20%.
AI data-center spending is driving the pressure: Nintendo says component costs and tariffs will add ¥100 billion, or $622 million, this year as suppliers such as Nvidia and SK Hynix prioritize hyperscalers.
Nintendo now expects Switch sales to fall to 16.5 million this financial year from about 20 million, showing limits to how far console makers can pass on higher costs.
Sony has warned it may need new ways to sell its next PlayStation, while analysts expect a successor could top $1,000 if the supply crunch persists.
SK Hynix sees tight memory supply lasting until at least 2030, raising the risk that weaker console and PC sales spread from hardware makers to game publishers.
Beyond movies and simpler games, what is the true survival plan for console makers against the AI supply crisis?
The AI boom is devouring tech supplies. Is the gaming industry just the first of many consumer markets to crumble?
With consoles becoming luxury items, is cloud gaming the only way for the average person to play?
Why Console Prices Hit Record Highs in 2026: Memory Shortages, Tariffs, and Industry Fallout
Overview
In 2026, major console makers like Sony raised prices for their gaming systems, including the PS5, PS5 Pro, and PlayStation Portal. These increases were driven by ongoing global economic pressures, especially a persistent microprocessor shortage that began in 2020 and a recent surge in RAM prices. The PlayStation 5 Digital Edition, for example, saw a 50% price jump. These underlying issues forced companies to pass higher costs onto consumers, reshaping the gaming market and making new consoles more expensive than ever before.