adminThe AI boom and video game hardware are increasingly connected: growing demand from data centres is changing the price and availability of components used in consoles and PCs. Memory, graphics cards and storage have all come under pressure, raising costs for manufacturers, game studios and consumers. Here is what industry analysts say about the causes, the likely effects and what buyers should keep in mind.
Image credit: Marta Branco
How the AI boom affects video game hardware
Major memory producers Samsung, Hynix and Micron have been directing more capacity towards the expanding number of AI data centres. This leaves less supply available for consumer products and has contributed to sharp price increases. DDR5, the current standard for random access memory (RAM), costs six to eight times more than it did in September 2025.
Analyst Joost van Dreunen, founder of Aldora and former CEO of SuperData Research, says manufacturers across gaming are feeling the strain, including Nintendo, Valve and Sony.
Joost van Dreunen | Image credit: THIS 2023/Alexander Håkansson
A key factor is the shift from dynamic RAM (DRAM) production towards high-bandwidth memory (HBM), which is designed for data-centre use. HBM is built and integrated differently, so it cannot simply be repurposed as ordinary desktop memory. Ben Miles, managing director of PC builder Wired2Fire, notes that the different formats make switching production between the two types impractical.
Smaller component companies such as Corsair and Kingston are also affected because they depend on a steady supply of the materials used to make DRAM. Miles describes a tight spot market in which limited stock is repeatedly traded, often at increasingly high prices.
For shoppers considering an upgrade, the type of memory supported by a system matters. Compare the full cost of a compatible CPU, motherboard and RAM rather than judging a build by the processor price alone.
Why older DDR4 systems are attracting interest
With DDR5 expensive and less readily available, some buyers and manufacturers are turning back to older platforms that support DDR4. Demand has pushed up prices for compatible CPUs, including less powerful models. Miles says that in some cases a Core Ultra 5 can cost less than an older Core i5, making entry-level or mid-range DDR5 desktops difficult to justify at current component prices.
DDR4 may offer a lower-cost route for some builds, but it is an older standard. Check compatibility and expected upgrade needs before choosing a platform, especially if you plan to keep the computer for several years.
GPU and SSD prices are also under pressure
Memory shortages reach beyond system RAM. Nvidia GPU prices have become less predictable because add-in board manufacturers such as Asus, Gigabyte and MSI have not been receiving GDDR7 video memory through their usual supply arrangements. They must source it themselves, creating differences in stock and pricing between brands. Miles says some traditionally affordable manufacturers have become more expensive than premium alternatives, and that many newer graphics cards are difficult to find.
Solid-state drives (SSDs) are another concern. AI data centres need large quantities of the NAND materials used in high-capacity storage, adding pressure to supply and costs. Because NAND is used across many types of electronics, higher prices could affect more than desktop computers, including phones and smartwatches.
When choosing a PC or device, check the actual availability and price of the exact configuration you want. A low advertised price may not reflect the cost of adding storage or upgrading memory later.
What rising component costs mean for consumers
Some manufacturers are already passing higher expenses on to buyers. Sony recently raised the PlayStation 5 recommended retail price by $100 after several price increases in recent years. The standard PS5 with a disc drive now costs $649.99 in the United States, $150 more than its 2020 launch price.
Nintendo has not increased the Switch 2 price, but van Dreunen estimates that DDR5 used in the console has become roughly 40% more expensive. He calculates that this could add around $18 in memory costs per unit. The console launched in the United States at $449.99 after preorders were delayed following President Trump’s tariff announcement.
Higher hardware prices could also affect demand for games. Piers Harding-Rolls, head of games research at Ampere Analysis, says console and AAA PC markets depend on people investing in hardware and joining the active player base. If fewer consumers buy new systems, demand for new games could weaken too.
Piers Harding-Rolls | Image credit: Ampere Analysis
The timing is challenging for Nintendo as it works to establish the Switch 2. It is also awkward for Sony and Xbox ahead of Grand Theft Auto 6, expected at the end of 2026, when both companies will want to benefit from the release’s potential to sell systems.
Console makers can respond in other ways because they also earn revenue from games, services and accessories. Omdia senior analyst James McWhirter says companies have several options to offset higher hardware costs; Nintendo could, for example, adjust Nintendo Switch Online subscription pricing.
James McWhirter | Image credit: Omdia
Affordable older consoles can help new players enter a platform’s ecosystem. However, Nintendo has already raised US prices for all three original Switch models by up to 15% from last August, citing market conditions. McWhirter warns that if middle-income households have less spending power and older systems become less affordable, fewer people may enter the ecosystem before the next generation.
Steam Machine launch and pricing uncertainty
Valve announced the Steam Machine, a console-and-PC hybrid running SteamOS, in November. In February, the company said its launch would be pushed back because component costs had risen, and it has not confirmed the price.
Van Dreunen initially expected a base price of $549, but now estimates it could reach $629. He puts the 2TB model at around $899. Making memory and storage user-upgradeable gives Valve the option of selling a lower-spec base model, though rising component prices make the promise of PC value with console convenience harder to deliver.
The Steam Machine was originally due to launch in early 2026. | Image credit: Valve
Miles says a further delay would not be surprising if Valve cannot set a stable recommended retail price. Even a launch price $100 or $200 above the original expectation could be followed by additional increases if parts remain expensive, potentially weakening the system’s affordability appeal.
Anyone comparing upcoming hardware should treat estimated prices as provisional until manufacturers confirm them. Also consider whether user upgrades are supported and what compatible memory or storage may cost.
How hardware costs could affect game development
Studios need powerful computers to build and test games, so rising component prices can stretch technology budgets. Miles estimates that a fixed IT budget could buy around 25% fewer machines per pound than before. He gives the example of a project that needs ten additional developers: hardware that once cost £30,000 could instead approach £50,000, increasing overheads without changing the project’s scope.
Harding-Rolls says these extra costs add risk to investments in new games and could make financing harder for some companies. Miles does not expect hardware prices alone to stop game development, but studios may need to plan equipment purchases more carefully and make existing machines last longer.
Van Dreunen suggests that expensive hardware and slower upgrade cycles could encourage developers to optimise games for the systems people already own, rather than focusing only on the newest specifications. He also points to renewed interest in handheld and browser-based games, as well as board games, and expects further movement towards digital distribution where physical goods face tight margins.
For studios, a practical response is to review hardware requirements early, distinguish essential upgrades from optional ones and test performance across a broader range of existing systems.
How long could the price pressure last?
The analysts expect memory and storage costs to remain elevated in the near term. Van Dreunen views the pressure as structural while AI infrastructure continues to use manufacturing capacity, rather than as a brief fluctuation. He expects hardware companies to keep adjusting manufacturing and pricing strategies as a result.
Harding-Rolls expects memory and storage prices to stay high for at least the rest of the year. McWhirter similarly expects memory makers to prioritise enterprise customers, leaving consumer products lower in the supply queue.
Miles points out that hardware is not the only possible constraint on AI expansion. Power, completed data-centre capacity and water availability in areas where facilities are built could become additional bottlenecks. If major AI projects are scaled back, demand pressure on components could ease, but the timing is uncertain.
For consumers, this means it is worth comparing current prices, checking compatibility and buying only when an upgrade is genuinely needed. The AI boom and video game hardware remain linked through component supply, so console and PC costs may continue to change as manufacturers respond to demand and availability.
