The AI industry’s insatiable appetite for memory chips is now hitting gamers where it hurts: their wallets. Sony and Nintendo have both raised console prices as the global memory shortage, driven by massive AI data center buildouts, squeezes supply for everyone else.
The numbers are stark
Memory chip prices doubled during the first quarter of 2026. But it gets worse: projections point to an additional 63% price increase in Q2 2026.
Nintendo responded by bumping the Switch 2 price up by $50 to $499.99 in the US, with a corresponding 10,000 yen increase to roughly 60,000 yen in Japan. Sony went further, hiking the PlayStation 5 price by $100 to $649.99.
Sony apparently expects these elevated prices to persist through at least 2027.
Why AI is eating the memory supply
AI data centers require enormous quantities of high-bandwidth memory to train and run large language models, image generators, and the growing ecosystem of AI applications. This isn’t just a gaming problem. Smartphones, laptops, and automobiles are all feeling the pinch from the same supply crunch.
Major chipmakers are investing billions in new production capacity to address the shortage. Industry estimates suggest it will be at least a year before that additional capacity becomes operational, which aligns with Sony’s expectation that elevated pricing will stick around through 2027.
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