Sony Profit Jumps 45% as Nintendo Earnings Slide on Chip Shortage

Sony made much more money than expected in its second quarter, while its rival Nintendo made less. Sony’s operating profit rose 45% to 622.3 billion yen, about $3.95 billion, beating the average analyst estimate of 505 billion yen. Nintendo’s operating profit fell 16% to 73.9 billion yen and missed estimates. Both companies are feeling the same pressure: memory chips are getting scarce and expensive because of the AI boom.

What happened

Sony reported results for the quarter ended September 30, 2026. Sales rose 10% to 3,429.4 billion yen, operating income rose 45% to 622.3 billion yen, and net income rose 44% to 449.6 billion yen. Sony said all three were record highs for a second quarter. The company raised its full year operating income forecast by 9% to 1,870 billion yen, according to Sony’s own earnings call.

Games and movies drove the beat. Operating income in Sony’s games business rose 83% to 220.1 billion yen, a record for the quarter, and the hit movie “Spider-Man: Brand New Day” helped the pictures business. Sony also lifted its outlook for its chips and music divisions.

Sony sold 2.6 million PlayStation 5 consoles in the quarter, down from 4 million a year earlier, partly because memory supply is tight. Sony shares closed up 7% on Thursday before the results were released.

Nintendo’s operating profit fell 16% to 73.9 billion yen and sales also fell, as the memory crunch and a lack of big new titles for the Switch 2 weighed on results. Nintendo kept its full year profit forecast and its outlook for 16.5 million Switch 2 sales. The company said it can secure enough memory for now and is not considering another price rise.

The memory shortage reaches beyond games. Apple said this week that memory costs are pressuring its margins in the holiday quarter. Reuters reported the Sony and Nintendo results on November 5, 2026.

Why it matters for beginners

Earnings are judged against expectations, not just against last year. Sony beat the estimate by a wide margin, and that is why the result counts as strong.

One input cost can hit very different companies. Memory chips go into phones, computers and consoles, so a shortage touches many products at once.

A single quarter can split a sector. Sony and Nintendo are both Japanese games companies, yet their results moved in opposite directions because their businesses and product lineups differ.

This is the same AI spending theme behind recent tech falls. Amazon and Intel shares fell last week when investors questioned heavy AI spending. Read that story here: https://investclaritypath.com/amazon-intel-results-deepen-tech-selloff/

What to watch next

• “Grand Theft Auto VI” launches on November 19 and is expected to be a major boost for Sony’s games business.
• Memory chip prices through the holiday season, and whether more companies warn about margins.
• Nintendo’s next big game releases, which are not due until the next fiscal year.
• Sony’s next quarterly update, to see whether the raised full year forecast holds.

FAQ

What is operating profit?

It is the profit a company makes from its core business, before interest and tax. It shows how well the day to day business is doing.

Why did Sony shares rise before the results came out?

Investors were already expecting a good report, and shares often move on expectations before the numbers are published.

What is a memory chip shortage?

Demand for memory chips has risen sharply because of AI data centres, while supply has not kept up. Prices rise, and makers of phones, computers and consoles pay more or wait longer.

Does this mean I should buy Sony shares?

No. This article explains the news only. It is not financial advice, and one good quarter does not make a stock a good buy.

Sources

Reuters, “Sony profit jumps on ‘Spider-Man: Brand New Day’; Nintendo earnings slide”, November 5, 2026: https://985theriver.com/2026/11/05/sony-posts-45-q2-profit-rise-on-movies-games-boost/

Sony Group Corporation, Q2 FY2026 earnings call transcript, November 5, 2026: https://www.marketbeat.com/earnings/reports/2026-11-5-sony-group-co-stock/

This article is for general information and education only. It is not legal or financial advice.