- By Prateek Levi
- Fri, 26 Dec 2025 01:48 AM (IST)
- Source:JND
The market for gaming hardware has already been operating in fragile territory this year, and it looks like things are about to get even more challenging. Following the impact of tariffs on prices and a downturn in consumer spending, the biggest blow yet would be the sharp increase in memory chip prices - a move that could have far-reaching implications for console sales, gaming PCs, and new hardware launches.
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Why Memory Prices Are Climbing
Demand for dynamic random access memory (DRAM) has surged as tech companies continue to ramp up artificial intelligence infrastructure worldwide. That demand is pulling memory supply toward high-margin data-center chips, leaving fewer components available for consumer devices like consoles and gaming PCs.
Some manufacturers have already begun restructuring priorities. Micron, for example, is winding down its long-running Crucial consumer brand — a name familiar to PC builders — as the market realigns around enterprise buyers and the impact may soon reach everyday gamers.
Why This Matters For Consoles
Memory plays a defining role in modern gaming systems — enabling faster load times, smoother gameplay, and performance stability in big-budget titles. But analysts warn that rising component costs could force console makers into difficult pricing decisions, especially since consoles are often sold with razor-thin margins.
“Since memory makes up about a fifth of a PC's total component costs, this hits manufacturers hard,” said Joost van Dreunen, games professor at NYU's Stern School of Business.
He added that console sticker prices could rise 10% to 15% over the next couple of years, while PC prices may see steeper jumps if memory costs spike again in 2026.
Market Forecasts Turn Cautious
Research firms are already revising expectations. Counterpoint projects sharp memory price increases extending into next year, while TrendForce has lowered its growth outlook for the console segment and now expects a possible decline in 2026.
Recent spending trends reflect the strain — hardware sales have dipped, unit volumes are at multi-decade lows, and tariffs have already pushed average selling prices higher.
High-end consoles like the Xbox Series X and PlayStation 5 Pro are already priced at premium levels, and any further increase could dampen demand in an already delicate market.
Upcoming Devices May See Delays
New platforms — including devices like Valve’s Steam Machine — could also feel the pressure as component costs complicate launch planning.
Companies may move conservatively if spending weakens further. As Emarketer analyst Jacob Bourne noted, “So instead of risking poor sales, we might see console makers delay releases.”
For now, the gaming industry appears to be entering a watch-and-wait phase — one where rising chip costs, slowing demand, and shifting priorities around AI may collectively shape what the next generation of gaming hardware looks like.