Bad News, Gamers: Exploding RAM Prices Could Doom the Next Console Generation
The latest buzz circulating in the industry suggests that skyrocketing RAM prices are causing a massive headache for Sony, Microsoft, and Nintendo. Just when we thought we were finally out of the woods with the PS5 and Xbox Series X shortages, the gaming industry took another wrench to the face. Buckle up, because while the supply chain issues have mostly resolved, a new villain has entered, and it’s hitting us right where it hurts—our wallets.
AI is RAMing Prices Up!
If you’ve been following tech news, you know that AI is the flavor of the month. Every company, from Google to your local toaster manufacturer, is trying to jam generative AI into its products. The problem: AI is hungry. Like, monstrous level hungry. It requires massive amounts of computing power and, you guessed it, memory. Because the demand for AI technology is going through the roof, the demand for the memory chips that power it is also surging. Thus, RAM prices are hiking up
Manufacturers are pivoting to serve the high-paying AI overlords, leaving traditional consumer electronics—like our beloved gaming consoles—fighting for scraps. This competition is driving RAM prices up by several hundred percent in just a few months. It’s basically the crypto-mining GPU shortage all over again, but this time, it’s ChatGPT that’s stealing our hardware.
The Next-Gen Console Delay Nightmare
We were all sort of mentally preparing for a new console cycle around 2027 or 2028. It feels like the standard lifecycle, right? Well, recent reports from Insider Gaming suggest that high-level execs are currently sitting in boardrooms sweating through their expensive suits. They are actively debating whether they need to push back the release of the PlayStation 6 and the next Xbox. Why? Because if they try to mass-produce these consoles right now with the current RAM prices, the math just doesn’t add up.
Consoles are traditionally sold at a loss or a very thin margin at launch, with the idea that the companies make their money back on software sales and subscriptions. But with component costs this high, the subsidies would have to be astronomical, a risk shareholders hate taking. Fingers crossed that the delay can give more time to the RAM manufacturers to figure out the infrastructure and supply issues. It sucks we might have to wait another year or two for the next-gen consoles to come out.
RAM Prices Have Consoles’ Financial Future Costs Climbing
IF Sony and Microsoft decide not to delay the consoles and stick to their original timeline, we, the gaming consumers, are the ones footing their bill. Inflation is real, and tech is getting more expensive to make. But if RAM prices stay at this inflated level, next-gen machines could launch at “extortionate” price points. We aren’t talking about a $50 bump here. We could be looking at a generation where the entry point is significantly higher than the $499 sweet spot.
To make matters worse, it’s not just the future that looks bleak. There are whispers that even the current generation of consoles could see price hikes in 2026. Usually, hardware gets cheaper the longer it’s on the market. But in this bizarre timeline, your PS5 might actually appreciate in value like a vintage car.
The Lesser of Two Evils Would Be a Delayed Launch
The AI boom shows zero signs of slowing down in the short run, leaving RAM prices high; however, the gaming industry is resilient and hopefully learns from its past. If there is one thing we know about Nintendo, PlayStation, and Xbox, it’s that they want to sell boxes. They know that overpricing a console for the average consumer is a death sentence (the PS3 launch debacle?). They will likely choose a delay over a disastrously expensive launch. I’d rather do the time than pay for an outrageously pricy console.
The AI Boom Will End. The Real Question: When?
AI generative systems are in their infancy, and everyone wants to see the new baby. BUT! The hype will die down, supply will meet demand, and RAM prices will drop. The gaming industry knows that launching overpriced consoles will break the consumer’s trust. With that, the way to go would be delaying the next-gen consoles (which again sucks!). With more time, the company could do more testing, upgrade the consoles, and hopefully strategize countermeasures to handle similar situations like this in the future.
