Experts Explained Why Global Shortage and Rising Memory Prices Hit Nintendo Shares So Hard
15:25
While Sony's shares show much greater resilience.
Yahoo Japan has released an article that makes it clear why the global shortage and rising memory prices have hit Nintendo harder than Sony. Experts have identified several factors.
- Lack of confidence in component supplies. Nintendo has not been able to publicly state that it has fully secured the necessary amount of memory for Switch 2. Unlike Sony, which had previously indicated in reports that it had secured a certain level of strategic component reserves and diversified supply chains. This creates much more concern among investors specifically regarding Nintendo
- Different business structure. Sony's business is much more diversified: in addition to the gaming division (PlayStation), the company receives significant revenue from music, film and other areas. Nintendo's main revenue directly depends on video games. Hardware (primarily the new Switch 2 console) is the core of the business, so any decrease in profit margins on "hardware" immediately and very noticeably affects financial performance and investor perception
- Different scale of subscription services. About 20% of PlayStation's revenue comes from the PS Plus service - a stable and predictable cash flow. For Nintendo, the share of revenue from Nintendo Switch Online (NSO) remains relatively small. As a result, the company's revenue is much more tied to one-time sales of consoles and games, which makes it more vulnerable to fluctuations in supply chains, rising costs and a possible decrease in the profitability of Switch 2
Against the backdrop of memory market volatility, which has been ongoing since the end of 2025, investors clearly prefer Sony's more protected and diversified business model.
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