Japanese gaming leaders Nintendo and Sony are preparing to release their earnings next week, as industry watchers monitor the impact of rising memory chip prices fueled by AI demand.

Nintendo’s Switch 2 continues to perform strongly, remaining the top-selling video game console in the US in 2025 despite cost pressures, according to Bloomberg.

Sony’s PlayStation 5, now five years old, may have gained an edge from a more affordable Japanese-language version launched to compete with Nintendo’s offerings.

United States market tracker Circana data points to continued strong sales for Nintendo.

Sony is set to spin off its home entertainment division, including the Bravia brand, into a joint venture with China’s TCL Electronics, indicating possible restructuring.

Key highlights include Nintendo’s projected 15 per cent profit growth and Sony’s sustained demand for popular games despite tariff-related pressures.