A critical shortage of memory chips, fuelled by soaring demand from the artificial intelligence (AI) sector, is threatening to drive up the cost of PlayStation and Xbox video game consoles for years to come. Industry analysts now warn that the knock-on effects of this PC component crisis could last well beyond 2028, impacting both current hardware and the anticipated next generation of machines.
The Root of the Crisis: AI Strains Supply
The core of the issue lies in the global market for DRAM (dynamic random access memory), a vital component in modern computers and games consoles. According to reports from Korean outlet Hankyung, the two companies that dominate roughly 70% of the DRAM market – Samsung and SK Hynix – are facing unprecedented demand. While traditional PC builders and upgraders are struggling with spiralling costs, a new and insatiable customer has emerged: the AI industry.
Modern AI applications require vast amounts of memory, creating a surge in orders that existing supply chains cannot meet. SK Hynix has stated plans to accelerate its transition to next-generation '1c DRAM' chips but admitted ‘it will be difficult to resolve the supply shortage.’ Similarly, Samsung is reportedly reviewing long-term supply requests from major clients but is hesitant to lock in volumes while prices are rising so rapidly.
Console Manufacturers Face a Costly Dilemma
This sustained shortage and the consequent price hikes for essential components place console giants Sony and Microsoft in a difficult position. With AMD confirmed as the chip supplier for both companies' next consoles, they are not insulated from the market pressures. The most direct consequence for consumers will likely be increased retail prices, as manufacturers pass on the higher costs of production.
There is also a tangible risk that the shortages could disrupt launch timelines. The gaming community widely expects the PlayStation 6 and the next Xbox to target a 2027 release. However, if component supplies remain critically low, Sony and Microsoft may be incentivised to delay their next-generation launches rather than bring expensive, supply-constrained products to market.
Divergent Fortunes for Sony and Microsoft
The current market instability affects the two rivals differently. Sony enters this period from a position of strength, with the PlayStation 5 enjoying robust sales boosted by Black Friday and the impending launch of Grand Theft Auto VI next year. For Microsoft, the challenges are more immediate. The Xbox Series X/S consoles are already under pressure, having been outsold in the US by other hardware and seeing no major Black Friday discounts.
Compounding this, the Xbox range has already grown more expensive due to US-China tariffs imposed during the Trump administration. Rumours suggest further price hikes are possible. In response, Microsoft's manufacturing partner Foxconn is looking to expand Xbox production in Vietnam, a strategy already used by Sony and Nintendo to circumvent tariffs.
Ultimately, the memory chip crisis underscores how the explosive growth of one technology sector can create waves across seemingly unrelated industries. For gamers in the UK and worldwide, the era of AI advancement may carry a direct and unwelcome cost: more expensive gaming hardware for the foreseeable future.
