RAM Prices Are Exploding — And It Could Delay the Next-Gen Consoles - video Dailymotion

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RAM prices are rising fast, and it could have a major impact on when the next generation of consoles actually launches. In this deep-dive, we break down why memory costs matter, how past hardware prices have delayed consoles before, and what this could mean for PlayStation and Xbox moving forward.  👍 If you enjoyed the video, don’t forget to like, subscribe, and turn on notifications so you never miss an upload.  🎮 Support the channel on Patreon! https://www.patreon.com/c/JamesSchierer Get access to exclusive content, including the latest Patreon-only video looking at 5 underrated retro games that still hold up today.

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00:00The gaming industry right now stands at a fascinating and potentially turbulent crossroads.

00:06While fans eagerly anticipate the next generation of consoles, there's an economic factor that

00:11threatens to push those launches further into the future and it's not a rumor or a leak.

00:16It's RAM prices and memory supply dynamics.

00:19At first glance, memory chips might sound like a boring technical topic, but they're

00:24absolutely central to how modern consoles perform.

00:27Whether we're talking about faster load times, smoother open worlds, or bigger game

00:31assets, memory capacity and speed are foundational, and when prices for that memory spikes, manufacturers

00:38have to react.

00:41So what's happening in the memory market right now?

00:43Over the last year, memory module and DRAM prices have surged dramatically due to global

00:48supply shortage and shifting industry demand.

00:51But DRAM prices shot up over 170% year over year, outpacing even gold's rate of increase,

00:58and analysis warned this trend could continue into 2026.

01:02The causes are structural memory makers are reallocating manufacturing capacity away from

01:07consumer components like DDR5 and GDDR6 toward high bandwidth memory and server chips for artificial

01:14intelligence applications.

01:16This has left companies that produce gaming hardware with fewer chips to buy and at much

01:20higher cost.

01:22Right now gamers are already seeing the effects components like RAM that once sold for $95 or

01:28$140 for a decent kit now command crazy prices, sometimes even higher than the purchase price of

01:34a full console.

01:36These aren't just nerd anecdotes.

01:38Smartphones, PCs, and game console markets are all feeling it across the board.

01:43Trendforce and other analysts have noted that memory can make up 21-23% or more of a console's

01:49total bill of materials, dramatically squeezing margins and limiting how aggressively manufacturers can price new hardware.

01:58When we look back at the history of consoles, we can see that the hardware component costs

02:01and supply constraints have influenced release schedules before, even if memory price spikes

02:07weren't the sole reason.

02:09For instance, the launch of the PlayStation 3 was famously delayed relative to its competitors,

02:14partly because Sony struggled with the complexity and cost of its custom hardware, which included

02:19cutting-edge processors and graphics components that were expensive and hard to mass-produce

02:24in 2006 through 2007.

02:26Sony's goal was to deliver a powerful system, but that contributed to the PS3 hitting the market

02:32months after Microsoft's Xbox 360, giving Xbox a huge early sales advantage.

02:39And even earlier, consoles like the Atari 800XL experienced production and delivery delays back

02:44in the early 1980s because supply couldn't meet demand, forcing many orders to ship late or arrive

02:50months after launch.

02:51While that example comes from the early home computer era, it's a good historical reminder of how hardware

02:56supply shortages, whether chips, memory, or components, have always shaped how and when products

03:02actually reach consumers.

03:05A number of industry reports now indicate that next-generation consoles, including rumored

03:09PlayStation 6 and Xbox follow-ups, could see their 2027-2028 target windows pushed out

03:16if the ramp crisis persists.

03:18That's because Sony, Microsoft, and Nintendo have to make hard decisions, either accept higher retail prices,

03:24squeeze performance, or specs to reduce memory demands, or delay production until costs come down.

03:29For a console maker, raising the price even $50 or $100 can meaningfully hurt demand and brand

03:35perception, especially when hardware margins are already razor thin.

03:40Incumbent companies have already been reacting in the present generation.

03:44Memory shortages contribute to higher prices for existing consoles like the Xbox Series X and S,

03:49which have seen increases over the last year, and some reports suggest another round of price hikes

03:54is possible unless memory supply stabilizes.

03:58Price increases like this are unusual.

04:00Typical console pricing strategies involve dropping the price over time, but the reality of today's memory

04:06market is flipping that trend on its head.

04:08In fact, current consoles have not followed the traditional pattern of getting cheaper over time,

04:14with Xbox and PlayStation hardware sometimes retailing for more now than at launch,

04:19a break with nearly four decades of gaming history.

04:24Right now, the RAM shortage isn't just a cool headline.

04:27It's affecting game developers, hardware makers, and ultimately gamers.

04:31The memory crunch is so severe that retailers have begun rationing high-end graphics cards,

04:36PC builders are warning about raising GPU prices due to memory costs,

04:40and projections suggest PC and console shipments could shrink year-over-year due to these pressures.

04:48So what does this mean for you, the gamer?

04:50If RAM prices remain elevated, console makers could choose to delay new hardware releases

04:55rather than launch a next-gen box that costs $1,000 or more,

04:59or one that compromises on performance to hit an artificially low price point.

05:04A delay might actually be a calculated move to allow memory markets to stabilize and to ensure

05:09that the hardware lives up to fan expectations at launch.

05:13That might feel frustrating, especially when everyone wants the latest tech now,

05:17but it could mean a more powerful, efficient console with better long-term support once it finally arrives.

05:23If you've been enjoying this in-depth analysis and want to see more videos like this one,

05:29please give the video a thumbs up, hit subscribe, and ring that notification bell so you don't miss

05:34any future uploads. Your support helps this channel grow and keeps you up to date on the most important

05:39industry developments. And if you want even deeper dives, be sure to check out my Patreon,

05:44where the latest exclusive video explores five underrated retro games that still hold up today,

05:50nostalgic favorites you might have missed, and why they're still worth your time.

05:54Ultimately, whether the next generation arrives on schedule or not,

05:58understanding the economics behind these consoles gives you a clearer picture of why hardware decisions

06:03are made and why something as boring as RAM pricing might actually be one of the biggest factors

06:09shaping the future of gaming. Until next time, game on.

RAM Prices Are Exploding — And It Could Delay the Next-Gen Consoles

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