Videogame console sales face pressure due to tariff issues and weak consumer spending. Memory chip prices surge, impacting devices like PlayStation, Xbox, and Nintendo Switch 2. Supply for consumer devices tightens as memory makers shift focus to data-center chips. Consoles may see a 10-15% price increase in the next year.
Console makers and gaming-hardware producers may have to raise prices due to rising chip costs, potentially hurting demand. High-end gaming PC maker CyberPowerPC already increased prices. Experts predict console prices could rise another 10-15%, with PC prices possibly climbing up to 30% due to memory price hikes.
Memory prices expected to rise 30% by the end of 2025 and possibly 20% more in early 2026. Console makers like Sony could extend device life-cycles to mitigate impact. Industry forecasts for the console market have been downgraded, with growth slowing this year and a decline expected in 2026.
Sales of gaming hardware dropped 27% last month, with unit sales at their weakest since 1995. Average selling prices for consoles have increased due to import tariffs. Component costs may complicate the roll-out of devices like the Steam Machine from Valve, expected to launch next year.
Read more at Yahoo Finance: Analysis-How AI boom is pressuring videogame console industry in race for memory chips
