Videogame console makers are facing mounting pressure as rising memory chip costs threaten to push prices higher, following earlier challenges from tariffs and weak consumer demand. Memory chips, essential for gaming performance such as fast load times and smooth frame rates, are in short supply as chip makers prioritize higher-margin products for data centers to support the growing demand for artificial intelligence infrastructure.
The shortage is already prompting PC and gaming hardware producers to increase prices. Companies like CyberPowerPC have announced recent hikes, with reports suggesting that Dell and Lenovo are planning similar moves. Analysts warn that console prices could rise another 10 to 15 percent over the next couple of years, while PC prices might climb as much as 30 percent as memory costs surge again in 2026.
Industry forecasts are being adjusted downward as a result. TrendForce now expects console market growth of just 5.8 percent this year, down from an earlier 9.7 percent projection, and anticipates a 4.4 percent decline in 2026. Consumer spending on gaming hardware has already fallen 27 percent last month, and unit sales hit their lowest level since 1995, as tariffs and a lack of compelling new games have left aging hardware without a major growth driver.
High-end consoles are already at record prices, with the Xbox Series X retailing around $650 and the PlayStation 5 Pro at about $750. Rising component costs could also affect upcoming devices, including Valve’s Steam Machine platform. Analysts suggest console makers may delay launches to avoid poor sales, navigating a market where consumer spending is increasingly constrained.