The relentless expansion of artificial intelligence infrastructure is creating a severe supply chain crisis for the global videogame industry, as soaring demand for high-performance memory chips diverts resources away from consumer electronics. This market shift is placing unprecedented pressure on console manufacturers, including Sony, Microsoft, and Nintendo, potentially leading to significant price increases and delayed product launches throughout 2026.
At the core of this supply bottleneck are Dynamic Random Access Memory (DRAM) chips, essential components in gaming consoles like PlayStation 5, Xbox Series X/S, and the anticipated Nintendo Switch 2. These chips enable critical gaming performance features including rapid loading times, seamless frame rates, and overall system responsiveness. With AI developers aggressively acquiring available memory supplies for data center applications, semiconductor manufacturers are prioritizing higher-margin data-center chips over consumer-grade components.
This strategic reallocation has already triggered industry-wide responses. Micron Technology announced the discontinuation of its longstanding Crucial brand, a cornerstone for PC enthusiasts and system builders. Meanwhile, gaming hardware specialists including CyberPowerPC have implemented price increases, with industry reports indicating similar moves planned by Dell Technologies and Lenovo.
According to Joost van Dreunen, games professor at NYU’s Stern School of Business, memory constitutes approximately 20% of total PC component costs. He projects console prices could escalate by 10-15% over the coming years, with gaming PCs potentially facing increases up to 30% as memory prices continue their upward trajectory through 2026.
Market analytics firm Counterpoint Research documented a 50% price surge for memory chips throughout 2025, with projections indicating an additional 30% increase in Q4 2025 followed by possible 20% growth in early 2026. These inflationary pressures compound existing challenges including tariff-related manufacturing cost increases and subdued consumer spending.
Industry trackers report concerning market indicators, with Circana noting a 27% decline in gaming hardware spending during November 2025—the weakest monthly unit sales since 1995—while average device prices reached record highs. Current premium consoles retail between $650-750, prices that may become standard across the industry.
The supply constraints may also impact upcoming product launches, potentially affecting Valve Corporation’s Steam Machine and other anticipated gaming platforms. As Emarketer analyst Jacob Bourne observes, manufacturers may opt to delay releases rather than risk poor sales in an increasingly price-sensitive market, fundamentally altering the product roadmap for the entire gaming hardware sector.