Jakarta, domclub Indonesia
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Price
video game console
such as the Playstation 5 and Nintendo Switch 2 are expected to be more expensive in 2026, due to the memory chip crisis triggered by artificial intelligence (AI) technology fever.
Sales of video game consoles are already under pressure due to tariff volatility and weak consumer purchasing power.Now, the surge in memory chip prices has the potential to make these devices more expensive.
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Demand for dynamic random access memory (DRAM) chips has outstripped supply as the technology sector attempts to expand AI infrastructure.DRAM is used in Sony PlayStation, Microsoft Xbox, and Nintendo Switch 2 devices.
High demand for AI infrastructure has pushed memory manufacturers to prioritize data center chips that have higher profit margins, making supply for consumer devices tighter.
Micron, for example, is discontinuing production of its long-running Crucial brand, a top choice for PC builders and tech enthusiasts.
Memory chips are a key component in gaming systems, enabling fast load times, smooth frame rates, and optimal overall performance.
According to analysts and industry experts, with chip-related costs rising, console makers and other gaming hardware manufacturers may be forced to raise prices as the devices are typically sold on very thin margins.
Launch
Reuters
On Monday (22/12), analysts said the move to raise prices could sharply reduce demand after previous price increases triggered by tariff policies.
Sony, Xbox and Nintendo did not respond to requests for comment.
Meanwhile, CyberPowerPC, a manufacturer of high-end gaming PCs, announced a price increase at the end of last month.
Other manufacturers such as Dell Technologies and Lenovo China are also planning to increase prices.
“Because memory accounts for about a fifth of the total cost of PC components, this is hitting manufacturers particularly hard,” said Joost van Dreunen, a gaming professor at NYU’s Stern School of Business.
He said retail prices of game consoles could rise another 10-15 percent in the next year or two, while PC prices could rise by up to 30 percent as memory prices rise in 2026.
Furthermore, Counterpoint Research estimated in November that memory prices would likely rise 30 percent in the last three months of 2025 and perhaps another 20 percent by early next year.
Although major console manufacturers such as Sony typically secure supplies several years in advance and can extend device life cycles to cushion the impact, some industry observers have lowered their projections for the console market.
TrendForce estimates growth of just 5.8 percent this year, down from its previous estimate of 9.7 percent, and forecasts a 4.4 percent decline in 2026 compared with its previous estimate of 3.5 percent.
According to data from Circana, spending on gaming devices fell 27 percent last month, while unit sales for the period were the weakest since 1995, as the average price of new gaming devices hit a record high for the month.
The average selling price of gaming consoles has risen this year as rising import tariffs increase production costs, while a lack of flagship games means aging hardware lacks a major catalyst for growth.
High-end consoles like the Xbox Series
Higher component costs could also complicate the launch of devices including the Steam Machine, Valve’s PC gaming platform expected to launch next year.
(lom/dmi)
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