"The Nintendo Switch 2 and an artificial intelligence data center don't look remotely alike. Yet they depend on the same crucial componentdynamic random-access memory, or DRAM. It is the fast-working memory in computers that allows them to run today's applications. Cloud computing giants such as Microsoft and Google are buying up memory hardware at data-center scale to build out AI clusters, tightening the supply for everyone else."
"On an earnings call on Tuesday, Nintendo president Shuntaro Furukawa said higher memory prices had not significantly affected the company's results for the current financial year, but he warned that if prices stay elevated the costs could start cutting into profitability. The company's shares promptly slid nearly 11 percent in Tokyo."
"DRAM stores data bits as tiny electrical charges. Those charges leak away, and the system refreshes them constantly. Think of it as a whiteboard where the ink fades over time and the system keeps tracing over the same words so they remain readable. Video games lean on that capability to keep gameplay smooth and responsive. A console like the Switch 2, for example, uses DRAM as a staging ground for whatever data the processor and graphics chip need next, from lighting and character positions to animation timing and collision calculations."
DRAM, the fast-working memory used by consumer devices and high-end AI processors, is facing constrained supply as data centers purchase memory at scale to build AI clusters. Major cloud providers including Microsoft and Google are increasing demand for AI-grade memory, reducing availability for other hardware manufacturers. Nintendo signaled that sustained high memory prices could erode profitability, a warning that preceded an almost 11 percent drop in its shares. DRAM stores data as tiny electrical charges that leak and must be refreshed constantly, and consoles use DRAM as a staging area to keep gameplay smooth and responsive.
Read at www.scientificamerican.com
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