Nintendo Co and Sony Group Corp will face scrutiny over how soaring memory chip prices driven by AI demand have affected their game console profitability when they report earnings next week.

The results will reveal whether the two Japanese gaming giants can maintain strong performance despite cost pressures, with Nintendo’s Switch 2 showing robust sales momentum while Sony’s five-year-old PlayStation 5 may have benefited from a cheaper Japanese-language-only version introduced to compete directly with Nintendo.

Data from US market tracker Circana showed that Switch 2 sales remained strong, with the console being the best-selling video game hardware in the US in 2025. Jefferies noted that the narrative of a “weakening Switch 2 has been dismantled” by that data.

READ MORE: Nintendo Switch 2 sets record as fastest-selling console in US

Sony also announced plans to spin off control of its home entertainment business, including the flagship Bravia brand, to a joint venture with China’s TCL Electronics Holdings Ltd. It might signal wider restructuring and closer focus on its more profitable segments, Bloomberg Intelligence said.

Meanwhile, Japanese banks Mitsubishi UFJ Financial Group and Mizuho Financial Group will report third-quarter results following the Bank of Japan’s December interest rate hike to 0.75 percent. Investors will also look to Sumitomo Mitsui Financial Group Inc’s Friday earnings for initial insight. SMBC Nikko noted there’s been no fallout from the central bank’s rate hikes and that “business conditions among banks are unlikely to diverge that much.”