Samsung has warned investors that the global memory shortage will persist through 2028, meaning video game console prices will continue to rise until at least 2029. The company's executive vice president of memory, Jaejune Kim, stated during an earnings call that supply constraints are expected to become even more severe in 2027 than in 2026, reinforcing the view that the shortage will persist through 2028.
Why console prices are skyrocketing
The ongoing memory shortage, which also affects hard drives and other components, has already driven up the cost of gaming hardware. The Xbox Series S, once marketed as an affordable console at £299.99, now retails for £429.99. Rumours suggest upcoming consoles like Project Helix and the PlayStation 6 could launch at over £1,000.
Kim explained that demand for 'AI service infrastructure' is the primary driver. 'Based on the incoming requests that we have been seeing from the customers, unmet demand from this year is likely to carry over into the following year, contributing to tighter supply conditions going forward,' he said. 'The supply constraints are expected to become even more severe in 2027 than 2026, reinforcing our view that the supply shortage will persist through 2028.'
Samsung profits soar amid crisis
While consumers suffer, Samsung is reaping enormous profits. The company reported 171.5 trillion South Korean won (approximately £120 billion) in revenue for the second quarter of its fiscal year (April to June 2026), a 130% increase year-on-year. Kim noted that multiyear supply agreements with customers seeking substantial AI infrastructure are being prioritised, aligning with Samsung's objective of hedging mid-to-long-term risks.
'These multiyear arrangements actually are aligned with our objective of hedging our mid to long-term risk. And so we have been engaging in discussions with customers, prioritising those who can guarantee committed future captive demand,' Kim added.
Impact on gamers and beyond
The shortage affects not just consoles but also PC graphics cards, mobile phones, home PCs, and laptops. Nvidia has already increased graphics card prices, forcing PC developers to optimise games for weaker hardware. Non-gamers are also impacted, as the shortage raises costs across the tech industry.
Some predictions are even bleaker, with one company suggesting the crisis could last at least a decade. However, Samsung's forecast of improvement by 2029 offers a sliver of hope. If the AI bubble bursts, Samsung's windfall would end, but a sudden economic shift could have far-reaching consequences.
