Alliance Consultancy: Soaring storage prices affecting game console profit margins, estimated shipment volume for 2026 to be reduced by 4.4% annually.

According to the latest report released by TrendForce, the surge in memory prices has led to a significant increase in the overall cost of consumer electronics products, forcing manufacturers to raise prices and impacting the consumer market. Following the downward revision of the production and shipment forecast for global smartphones and laptops in 2026 in early November, TrendForce has also revised down the shipment forecast for game consoles in 2026, from an initial estimate of a 3.5% year-on-year decrease to a 4.4% year-on-year decrease. TrendForce points out that the soaring memory prices are impacting various end consumer devices, and game consoles are not immune to this trend. In fact, game consoles mainly derive profits from software and membership services, and are intended to expand their user base, often using price reduction or regular promotions as sales strategies.