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PlayStation 5 sales fell 35% to 2.6 million units, while Switch 2 sales dropped 41% to 2.7 million in the third quarter of 2026, amid price increases for both consoles. Higher production costs and tariffs, coupled with increased demand for memory chips and other components as AI data centers expand, pushed prices up and weighed on consumer demand. Sony offset some of the decline in hardware sales with growth in game and subscription revenue, while Nintendo maintained its target of selling 16.5 million Switch 2 units in the current fiscal year.
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