The rapid expansion of AI infrastructure is tightening the supply of memory chips, which could lead to higher prices for video game consoles and computers.

According to a recent Reuters report on the matter, demand for dynamic random-access memory (DRAM) chips, a key component in devices such as the PlayStation, Xbox, and Nintendo Switch, now exceeds supply as tech companies prioritise building AI data centres. This has led memory manufacturers to focus on higher-margin chips for servers, reducing availability for consumer electronics. Memory chip prices have already risen approximately 50% this year.

Industry analysts warn that console makers, who typically operate on thin profit margins, may be forced to raise prices for their hardware, states the report. One analyst estimates console prices could increase by 10-15% over the next two years, while gaming PCs could see price hikes of up to 30%. This follows earlier price increases driven by import tariffs and comes at a time when consumer spending on gaming hardware has already weakened.

The Reuters report further states that some forecasts for the console market have been downgraded. Research firm TrendForce now expects a 4.4% decline in the market in 2026. The rising component costs could also lead to delays for upcoming devices, such as Valve's expected Steam Machine platform, as companies may postpone releases to avoid poor sales in a softening market.