Gaming Console Makers Face Cost Crunch as Memory Prices Soar -- Market Talk

Dow Jones12-02

0658 GMT - Videogame-console makers face a mounting headwind in surging prices for memory chips and related components, research firm TrendForce warns. That's an issue for companies like Nintendo that are increasing memory capacity in their hardware. According to TrendForce, memory costs are behind the heftier price tag of Nintendo's Switch 2 console, inflating production costs and eroding profit margins for the Japanese company. Memory modules will likely make up 21%-23% of total hardware costs in 2026, TrendForce estimates, pressuring Nintendo to deviate from the industry's traditional "price-for-volume" growth strategy. Similar challenges face Sony and Microsoft too, TrendForce says as it downgrades its 2026 forecast for global console shipments. It now expects a 4.4% drop in shipments. (jie.yang@wsj.com)

(END) Dow Jones Newswires

December 02, 2025 01:59 ET (06:59 GMT)

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