If you’ve been holding out hope for a discount on a next-gen Xbox console, you might want to brace for some disappointing news. A new industry report suggests that Microsoft may be forced to implement yet another price increase for its Xbox Series X/S systems, and the reason points to a global crisis far beyond the gaming world: a critical shortage of RAM.
The grim forecast comes from the popular YouTube channel and industry insider Moore’s Law Is Dead, which has learned that Microsoft is expressing "serious concerns" to its partners about the ongoing memory shortages. In a surprising twist, the same report indicates that rival Sony is in a much stronger position, potentially allowing it to keep PS5 prices stable while Xbox becomes a more expensive proposition.
The Root of the Problem: Why AI is Gobbling Up the World's RAM
So, why is there suddenly a shortage of the memory chips that power our gaming consoles, PCs, and SSDs? The answer, it seems, lies in the explosive growth of artificial intelligence.
The new Moore’s Law Is Dead video, which you can watch below, details the cascading effects of the constrained memory supply. The report points a significant finger at massive AI projects, specifically naming OpenAI's rumored "Stargate" project. It's believed that this single initiative alone may have consumed a staggering 40% of the global DRAM stock.
This has created an insatiable hunger from flourishing AI data centers for faster, high-bandwidth memory. Manufacturers, seeing a more lucrative and consistent market, are shifting their priorities to meet this booming demand. The inevitable trickle-down effect means that components like GDDR6 memory (used in graphics cards and consoles) and DDR5 RAM are becoming more scarce and expensive for consumer electronics, which could lead to price hikes for everything from gaming PCs to the Xbox sitting on store shelves.
Sony's Strategic Stockpile vs. Microsoft's Lack of Foresight
The most revealing part of the report is the stark contrast between how the two console giants have prepared for this situation.
According to MLID’s sources, Sony had the foresight to build a substantial stockpile of GDDR6 SDRAM. This strategic move insulates the company from the immediate worst effects of the shortage, allowing it to avoid another price hike on the PS5 in the near future. The insider even notes that this preparedness is what has enabled Sony to confidently offer PS5 discounts for upcoming sales events like Black Friday.
Microsoft, on the other hand, apparently "didn’t plan ahead at all." Without a similar buffer of memory components, the company is left exposed to the volatile spot market, where prices are skyrocketing. The report states that Microsoft is now warning its partners that more Xbox console price hikes are likely. This comes at a time when demand is already fragile, with some retailers reportedly no longer even carrying the systems.
Can the Xbox Brand Survive Another Price Increase?
This is the multi-billion dollar question. The morale of the Xbox faithful is already at a low ebb. Let's look at the current landscape:
- The Xbox Series X has already seen a significant jump, now retailing at $649.99 for the disc version in many markets—a $150 increase from its original $499.99 launch price in 2020.
- Game Pass, Microsoft's flagship subscription service, has also seen multiple price increases, making the overall ecosystem more expensive.
- A continued lack of major, system-selling exclusive games has left many fans questioning the value proposition of investing in the hardware.
Another price hike could be the final straw for many potential buyers, further cementing the PS5's market dominance and raising serious questions about the long-term viability of the Xbox console line.
What About PC Gaming and the Steam Deck?
The report is less certain about how the memory scarcity will affect Valve's handheld PC, the Steam Deck. It suggests that if the shortage becomes a significant factor, buyers could see the initial healthy supply of new units sell out quickly without the possibility of a swift restock, leading to scarcity and potential price inflation on the secondary market.
As of now, neither Microsoft nor Sony has officially commented on the worsening memory crisis. Nevertheless, with the cost of DDR5 memory already skyrocketing on the DIY PC market, some savvy gamers are preemptively scoop up any components they fear may be impacted next.
The situation remains fluid, but one thing is clear: the battle between Xbox and PlayStation is no longer just about games and services. It’s also a battle of supply chain strategy, and according to this latest report, Microsoft is on the verge of losing it.