Nintendo, the Japanese gaming giant, announced it will increase the price of its Switch 2 gaming console due to rising memory chip costs, and warned of a 27 percent drop in net profit this year. The company stated the Switch 2 price in Japan will increase 20 percent from May 25, and in the US by 11 percent to $499.99 and in Europe by six percent to 499.99 euros from September 1. For the year ending next March, Nintendo anticipates a 27 percent decrease in net profit to 310 billion yen ($1.98 billion) on sales of 2.05 trillion yen. Sony, whose PlayStation5 has already increased in price, projects a 13 percent rise in income but with declining sales of its older console. Nintendo sold 19.86 million units of the new console by March, driven by games like "Pokemon Pokopia", "Mario Kart World", and "Donkey Kong Bananza". Price increases for memory chips, fueled by the artificial intelligence boom, have affected game console, smartphone, and other device makers. Sony expects higher profits for the game division despite falling sales for the year to March 2027. Analysts suggest that Sony is well-positioned to benefit from the release of "Grand Theft Auto VI". Nintendo is in a more difficult position because Switch 2 customers are "especially price sensitive". The first-year game lineup for Switch 2 is weaker than its predecessor.