RAM Shortage 2026: Why Consoles and Gaming PCs Cost More
The memory crisis has pushed up Xbox, PS5, Switch 2 and Steam Machine prices. Here are the confirmed price hikes, the sales data and what comes next.
Gaming hardware has become noticeably more expensive in 2026, and the cause is the same in almost every case: memory and storage. Demand from AI data centers has absorbed supply, and consoles, which are traditionally sold at little or no profit, are feeling it most. This guide sums up the verified numbers as of 2 October 2026.
What each platform has done
Microsoft announced its third worldwide Xbox price rise since 2025, effective August 1, with 512 GB models up 100 dollars and 1 TB models up 150 dollars, while the disc-equipped 2 TB Series X was discontinued. Microsoft did not publish a full table, but GamesRadar calculated from the previous increase that the Series X disc version would be 799.99 dollars, the Series X digital 749.99 dollars, the Series S 1 TB 599.99 dollars and the Series S 512 GB 499.99 dollars. Treat those as a reporter's math, not an official list.
Microsoft's explanation was blunt: console storage and memory prices have increased by more than 2.5 times, and it expects another doubling by the fall of 2027. It added that consoles are typically sold for less than they cost to make.
- PlayStation: a price rise took effect in the spring; GamesRadar lists the cheapest PS5 at 599.99 dollars and the highest-end model at 899.99 dollars
- Xbox: another increase from August 1, the third since 2025
- Nintendo: Circana's Mat Piscatella notes a Switch 2 price hike coming September 1, 2026
- Valve: Steam Machine starts at 1,049 dollars, with Valve blaming component costs
What the sales data shows
Circana's July figures, relayed by GamesRadar, say hardware spending fell to a July low not seen since 2020. Hardware sales dropped 39 percent compared with July last year, and the average price of a system rose 16 percent. Piscatella said the problem goes beyond the comparison with the record launch of the Switch 2 in June 2025, and credited higher prices from the RAM and component crisis for slowing PS5 and Xbox Series sales.
Xbox's candid memo
Xbox CEO Asha Sharma and strategy chief Matt Brody published a candid message about costs. According to Tom's Hardware, Xbox paid twice as much for storage in February 2026 as the previous fall, with costs doubling again since, and will pay more than five times as much in 2027 as it did two years earlier. RAM is following a similar path. The executives said the current gap cannot continue and that Xbox is considering a new business model and partnerships for hardware. Tom's Hardware reads that as a hint that future hardware could be built with outside partners.
How long will it last?
Nobody can promise an end date. Lenovo executive director Martin Hiegl told an audience at ISC 2026 that this is a new normal for DRAM and NAND pricing, and that inflated prices could last until at least 2030, according to ComputerBase as relayed by GamesRadar. Memory makers are raising production, but Lenovo does not expect prices to return to old levels soon. This is one executive's forecast, not a certainty.
What it means for gamers
For buyers the practical effects are clear. Console hardware is more expensive than at launch, the Xbox Series S 512 GB now sits at the price the Series X had in 2020 if GamesRadar's math is right, and PC builders face costly RAM and SSDs. The next generation is also at risk. Reports say Sony has enough RAM to cover the PS5 through the year including the launch of GTA 6, while analysts cited by GamesRadar suggest that a 1,000 dollar next-gen console could cut five-year sales by around 40 percent. That is an analyst estimate, not a company plan.
If you are waiting for a deal, the evidence suggests that it may be a long wait. If you need hardware for a big release such as Grand Theft Auto VI on November 19, buying earlier carries less risk than hoping for a price cut.
FAQ
Why are consoles getting more expensive in 2026?
Memory and storage prices have surged because AI data centers are absorbing supply. Xbox says these costs rose more than 2.5 times and it expects another doubling by fall 2027.
How much does a PS5 cost now?
According to GamesRadar, the cheapest PS5 costs 599.99 dollars and the highest-end model costs 899.99 dollars in the US after this year's price rise.
When will RAM prices come down?
No one knows. A Lenovo executive said high DRAM and NAND prices could be a new normal until at least 2030, though that is a forecast and not guaranteed.
Sources
- Xbox announces another console price hike - GamesRadar (opens in a new tab)
- RAM shortage shoves console sales to a July low not seen since 2020 - GamesRadar (opens in a new tab)
- Xbox will pay five times more for memory and storage in 2027 - Tom's Hardware (opens in a new tab)
- Lenovo says we're in a new normal for RAM costs - GamesRadar (opens in a new tab)
