• Business Console PC Commentary How a surge in memory prices will affect the game industry ‘Console manufacturers are best-placed to offset hardware inflation.’ February 23, 2026 The intensifying expansion of AI infrastructure has generated a new boom cycle in terms of demand for DRAM memory and NAND storage, the most primary types of rapid access and long-term storage memory, respectively. • Price rises for memory and storage will touch many parts of the games industry, including hardware, software, and development costs. • Hardware margins will be squeezed Omdia’s Memory and Storage research teams estimate that PC DRAM and SSD prices for mainstream configurations saw, on average, increases of nearly 100% and 40%, respectively, in 2025. • This trend is flowing into contract pricing and has only continued in the first quarter of 2026, where DRAM prices are expected to rise by a further 60% and NAND memory 70%. • Memory and storage are key components in dedicated games hardware such as games consoles. • In 2Q25, Omdia estimated that the combined memory in a base PS5 accounted for at least 20% of the overall bill of materials of the console.

Article Summaries:

  • Memory price hikes-DRAM up ~100 % and SSDs ~40 % in 2025, with further 60 % and 70 % increases projected for 2026-are squeezing console and PC hardware margins. The cost of memory accounts for about 20 % of a PS5’s bill of materials, and higher contract prices will be passed to new units once inventories deplete. Console makers can offset losses through software, services and peripherals, with expectations of higher subscription fees (e.g., Nintendo Switch Online) and premium pricing for upcoming titles such as GTA 6. Entry‑level consoles may see price rises, reducing affordable entry points amid weakening middle‑income spending.
  • A sharp rise in DRAM and NAND prices, driven by AI infrastructure demand, is squeezing margins across the gaming sector. Omdia estimates PC DRAM and SSD costs jumped nearly 100 % and 40 % in 2025, with further 60 % and 70 % increases projected for early 2026. Memory now accounts for about 20 % of a PS5’s bill of materials, so higher contract prices will raise the cost of new consoles. Console makers-Sony, Nintendo, Microsoft-can offset this through higher subscription fees and premium services, while entry‑level models such as the Switch may see price hikes, reducing affordable entry points for consumers.

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