The video game industry is bracing for a significant surge in hardware costs driven by the global artificial intelligence boom. Unprecedented demand for DRAM and NAND memory from data centers and AI infrastructure is increasingly sidelining the production needs of gaming consoles and PC manufacturers.
Semiconductor giants are reallocating their manufacturing capacity toward high-margin AI solutions. This strategic shift is severely limiting the supply of memory components for consumer electronics, fueling rapid price escalations that experts predict could reach as high as 30%.
The impact will be most visible in the next generation of gaming hardware. With the PlayStation 6 expected to debut between 2027 and 2028, alongside a new Xbox iteration, launch prices are projected to reach record highs. Insider leaks suggest the PS6 could be positioned at $700–$800, while the upcoming Xbox might retail for anywhere between $800 and $1,200.
Financial analysts warn that because manufacturer profit margins are already razor-thin, these rising production costs will likely be passed directly to the consumer. For current-generation consoles, this could mean a price hike of 10–15%, while PC components could see increases of up to 30%.
The situation is further complicated by previous tariff adjustments and a cooling global demand for consumer electronics. While average device prices hit record peaks, overall hardware sales are in decline. Experts also suggest that manufacturers may delay product launches to avoid releasing expensive hardware into a market where consumer spending power is increasingly strained.
Source: iXBT.games