Goldman Sachs has highlighted three Japanese videogame companies as its favored sector holdings in advance of a concentrated period of new releases, reaffirming Buy ratings on Sony Group Corporation and Capcom, and maintaining a Buy on Nintendo albeit with a more guarded tone.
Sony Group
Goldman points to a robust software line-up for Sony in fiscal year 2026 that includes both in-house and third-party titles, and specifically references Grand Theft Auto VI as part of that pipeline. The bank emphasizes that Sony has set a clear policy objective to balance top-line growth with improvements in profitability amid an environment of rising costs - memory costs are singled out in Goldman’s June 5 commentary as a particular pressure point.
With the PlayStation 5 now in the latter half of its product cycle, Goldman Sachs argues that Sony has scope to manage hardware profitability through a combination of adjusting unit shipments and modifying selling prices. In Goldman’s assessment, Sony’s ability to navigate those trade-offs places it in a comparatively stronger position versus Nintendo on this metric.
On corporate results, Sony reported fourth-quarter 2025 revenue of $19.43 billion, which exceeded consensus revenue expectations, while earnings per share fell short of forecasts. Separately, Sony disclosed a preliminary agreement with Taiwan Semiconductor Manufacturing Company to create a joint venture focused on the development and production of next-generation image sensors.
Capcom
Goldman Sachs regards the company’s roadmap positively, noting in particular that the announcement of Resident Evil Veronica being scheduled for 2027 is a constructive development for future content flow. The bank characterizes major downloadable content for Monster Hunter Wilds as in line with expectations.
Capcom’s recent and upcoming launches include Pragmata, which was released on April 17, and Onimusha: Way of the Sword, slated for a September 25 release. Goldman also highlights Capcom’s presence in visual media, with a Street Fighter movie set for October and a new Resident Evil film rolling out sequentially beginning in September. The bank concludes that Capcom’s fiscal year 2027 product pipeline and broader event calendar appear deeper than those of its peer group.
From a valuation standpoint, Goldman notes that Capcom’s shares trade with a fiscal-year-two price-to-earnings ratio that is approaching the sector median, while the company continues to exhibit strong profit growth.
Nintendo
Goldman Sachs gives a more cautious appraisal of Nintendo’s near-term software slate. While acknowledging that the mix of upcoming first-party and third-party titles is varied and could attract different user segments, Goldman points out that the only major Nintendo first-party release currently scheduled for 2026 is a remake of The Legend of Zelda: Ocarina of Time - a title the bank regards as somewhat underwhelming relative to market expectations.
On the hardware side, Nintendo implemented a price increase for the Nintendo Switch 2 in Japan on May 25, with additional price rises planned for the United States and Europe on September 1. Drawing a parallel to the PlayStation 5 experience - which Goldman notes achieved penetration at a pace comparable to the PlayStation 4 despite multiple price increases - the bank expresses the view that Switch 2 should reach steady penetration over a medium- to long-term horizon as Nintendo’s software pipeline expands.
Summary assessment
Goldman Sachs’ cross-company view is that Sony’s 2026 software slate and ability to adjust hardware economics put it in a favorable position, that Capcom’s combination of game releases and media projects creates a relatively rich 2027 calendar together with an attractive valuation profile, and that Nintendo faces a more subdued first-party release schedule for 2026 even as its new console pricing and eventual software cadence support medium- to long-term penetration.
Sector implications
- Videogame software and content - demand and investor expectations are being driven by the timing and scale of first-party and third-party releases.
- Hardware manufacturers and consumer electronics - pricing strategies and unit volumes are central to managing hardware profitability amid rising component costs.
- Semiconductors and sensors - Sony’s JV with TSMC on next-generation image sensors links gaming-adjacent firms to semiconductor manufacturing trends.