"With unbridled expansion of AI data centres, that require large amounts of high-performance memory, the consumer hardware market is facing a dire shortage of RAM globally. Consequently, amidst dwindling supplies, the prices of RAM have skyrocketed. An Insider Gaming report Monday claimed that the increasing RAM prices could delay the next generation of consoles. According to the publication's sources, RAM prices and availability have become a concern for platform holders like Sony and Microsoft."
"Consoles have traditionally been sold in a subsidised model, with manufacturers typically taking a loss on the hardware to generate revenue through game sales, digital and subscription services. However, due to larger economic challenges and market uncertainty, the current-gen consoles have seen multiple price hikes over the past year. Both PS5 and Xbox Series S/X consoles have gone up in prices since they launched in 2020."
Global RAM shortages driven by rapid expansion of AI data centres have sharply increased memory prices and reduced availability. Platform holders Sony and Microsoft face concerns that high RAM costs could affect production timelines and component sourcing for their next-generation consoles. Consoles are often sold at a loss initially, relying on game and subscription revenues, but rising component expenses have already pushed PS5 and Xbox Series S/X prices upward. Manufacturers are debating delaying PlayStation 6 and the next Xbox beyond the 2027–2028 window to wait for RAM supply and prices to stabilise and to avoid higher retail prices.
Read at Gadgets 360
Unable to calculate read time
Collection
[
|
...
]