RAM Price Surge Puts Next-Gen Gaming Console Timelines at Risk

RAM price surge is emerging as a critical risk factor for the next generation of gaming console. Industry analysts such as Insider Gaming's Tom Henderson reported that launches for next-gen consoles such as PlayStation 6 (PS6) and the next Xbox could be delayed or priced higher than originally planned due to the surge in the artificial intelligence (AI) sector.

In the fourth quarter of 2025, industry reports started analyzing how AI companies are absorbing large volumes of high-bandwidth and standard DRAM, making it increasingly difficult for console and PC manufacturers to secure long-term memory contracts. A report by Henderson, on Dec 29, 2025, notes that RAM, already one of the most expensive components in modern consoles, is becoming scarce, an issue that directly affects launch timing and retail pricing for next-gen consoles.

He suggested that manufacturers such as Sony and Microsoft are now weighing whether to delay next-gen hardware releases, which were originally planned for a 2027-2028 launch window. The delay, as Henderson suggested, is in hope that “RAM manufacturers will be able to build out their infrastructure to produce more RAM” by 2027/2028, which would lower the price and increase availability.

This would hamper the historical seven-to-eight-year generational transitions around console cycle launch for both Sony and Microsoft. The RAM shortage, combined with increasing GPU cost, could not only delay the launch of next-gen consoles, but also increase the price of the current-gen consoles, such as PS5 and Xbox Series X/S, as well.

AI-Driven RAM Shortage and its Impact on Gaming Console

AI data centers are prioritizing advanced DRAM and graphics memory for model training and inference workloads, often outbidding consumer electronics firms. This has impacted the pricing across GPUs, system memory, and console components. 

For the gaming industry, the implications extend beyond delayed console launches. Rising memory chip and GPU costs have already driven repeated price increases in the PC gaming market. Microsoft has now increased the price of the 2TB Xbox Series X to $800 USD, whereas Nintendo, even after avoiding a price hike, still launched the Switch 2 at $450— $150 more than the original Switch. 

As outlined in Forbes, in the current situation, a PS5 price has reached higher than it was during its launch five years ago, whereas prices are supposed to decrease with time. The report also anticipates that if the current console prices could increase this much, the next-gen consoles could launch at a $800-1000 price range, which would not be an attractive price for a gaming console in the current economy. 

The concern echoes broader market signals. In late 2025, Nintendo lost an estimated $14B in market value following reports of surging memory chip costs. While Nintendo is not directly tied to next-gen console timing, the episode highlighted how sharply investors and manufacturers are reacting to memory inflation.