Gaming Hardware Prices Are Likely Going to Go Even Higher, Say Analysts

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Gaming can be a costly hobby now, whether you play on a PC or a console. Recent price increases, caused by a worldwide shortage of computer memory, are likely to stick around for a while, according to industry experts at Kotaku.

According to NYU Stern professor Joost van Dreunen, rising RAM costs are the primary driver of recent price increases. He also pointed out that global political factors, like US tariffs, have contributed to these higher prices.

According to van Dreunen, the main reason prices are going up is the increasing cost of RAM. However, unpredictable U.S. tariffs are also making the situation worse. Suppliers and manufacturers are now stuck with a lot of unsold products because consumers aren’t willing to pay the higher prices. Instead of creating jobs in the U.S., this has led to consumers being priced out of the market and manufacturing moving to countries with lower labor costs.

Kantan Games CEO Dr. Serkan Toto agreed with previous comments that several issues are causing ongoing price increases globally. Daniel Ahmad, research director at Niko Partners, also pointed to changing exchange rates around the world. However, he noted that these problems are mainly impacting Western countries, while the Middle East, North Africa, and Asia are currently performing relatively well.

Despite global economic challenges and political instability, the video game market in Asia and the Middle East and North Africa (MENA) remains strong and is expected to grow significantly in the years ahead. Our forecasts show that these regions will continue to lead worldwide growth in video game software and services all the way through 2030.

Analysts generally agree that prices are expected to continue rising due to ongoing global political instability. Rhys Elliot, from Alinea Analytics, believes the recent price increases aren’t the highest they’ll reach, but rather a sign of further increases to come.

Initially, long-term contracts and existing stock protected retail prices, according to Elliot. Now, as those contracts end, companies are facing higher component costs, impacting the entire industry. Elliot still sees the industry as generally stable because there are still new customers willing to spend money. However, James McWhirter, a senior analyst at Omdia, predicts we’ll likely see price increases for platforms like the upcoming Nintendo Switch 2 next year.

Mat Piscatella, a senior director at Circana, thinks there’s a limit to how expensive companies can make gaming hardware. We just haven’t found out what that limit is yet.

Okay, so things are getting tricky for the companies that make our PCs and consoles. They’re facing some really tough decisions about how much to charge for stuff and how much to actually make, and this is going to be true for a while. There is a limit to how much people will pay, but honestly, nobody really knows what that limit is yet. It depends on a ton of stuff, some of which is hard to even predict! This is totally new territory for everyone, and we’re all figuring it out as we go.

Tiago Reis from Newzoo isn’t certain if prices will fall once global conflicts ease and the RAM supply improves. He suggests the recent price increases might signal a new, permanently higher baseline for how much companies charge.

We believe gaming hardware prices will likely stay higher than in the past. Data from Newzoo shows that players are sticking with familiar games and platforms, and growth is now coming more from things like in-game purchases than from attracting completely new players. This suggests that companies like Sony and Microsoft won’t feel as much pressure to heavily discount hardware, as they sometimes did before. Prices might still drop occasionally, but a return to the very low prices we’ve seen in the past seems unlikely.

However, van Dreunen predicts a difficult future for gamers. He points out that software prices increased in 2024 and haven’t decreased, and a similar pattern is now emerging with hardware. He believes this will push the industry towards subscription services and advertising as primary revenue sources, as players move away from expensive upfront purchases. Sadly, he anticipates that budget-conscious gamers will be left behind, with large tech companies likely offering virtual PCs or consoles as a monthly rental service instead.

McWhirter thinks Nintendo could struggle in the current market because they recently launched a new console. He emphasized the urgent need for Nintendo to quickly build a large user base for the Switch 2.

Other experts, including Piscatella and Ahmad, have pointed out that gamers still have many affordable options, like internet cafes, older game titles, and playing on mobile devices or through cloud gaming services.

According to industry analyst Michael Pachter, the idea that gaming is an expensive hobby isn’t accurate. Many affordable and free games, especially on mobile devices and free-to-play platforms, prove otherwise. He suggests companies’ claims of economic hardship driving up prices don’t quite add up. Looking ahead, analyst Ben Elliot predicts future console generations will see more games released on existing platforms like the PS5, Xbox Series X/S, and the upcoming Nintendo Switch 2. He believes ‘cross-generation’ games – titles playable on both old and new consoles – will become increasingly common when the next console cycle begins.

Dr. Toto sees reasons to be hopeful for the future, noting similarities to the supply chain problems experienced during the Covid-19 pandemic in 2020, but suggesting things may improve.

He predicts that component availability will improve starting in 2028. While acknowledging he might be hopeful, he compared the current situation to the console shortages during the early days of the COVID-19 pandemic. At that time, it seemed impossible that stores would eventually be overflowing with PlayStation 5 and Xbox consoles, but that’s exactly what happened once supply chain issues were resolved.

In the end, Piscatella admits it’s hard to predict the future of gaming. Current predictions could easily be proven wrong very quickly – in a matter of weeks, days, or even hours.

He stated that anyone claiming to have a clear picture of the future is either self-deceptive or has an ulterior motive. He described the current situation as the most precarious he’s witnessed in two decades, expressing both concern and disappointment.

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2026-06-10 17:43