AI Boom Drives Memory Chip Costs, Threatening Console Prices

The surging demand for memory chips by the AI industry is causing significant price hikes and supply constraints for dynamic random access memory (DRAM). This global 'memory crunch' is forcing video game console manufacturers to consider raising prices by 10-15% over the next two years.

• AI demand for high-bandwidth memory drives up chip prices globally.
• Console makers face potential 10-15% price hikes due to rising memory costs.
• Memory manufacturers prioritize higher-margin AI and data center chips.
• Weak consumer spending and tariffs further strain the gaming console market.
• Industry forecasts predict reduced console market growth and potential delays.
• Impact felt by Sony, Microsoft, Nintendo, and PC gaming hardware manufacturers.

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