The gaming world is filled with concern after a well-known hardware leaker, Moore’s Law Is Dead, warned that Xbox console prices may increase for the third time in the same year. While it may look like corporate greed on the surface, the real reason behind this situation runs much deeper. The problem is linked to a massive shortage of RAM and chip components, and the impact extends far beyond gaming.
Microsoft Is Preparing for Another Xbox Price Hike
According to multiple sources, Microsoft has started warning sales partners that Xbox Series X and Series S supply may soon become extremely limited. If the stock does not run out completely, Microsoft may raise the prices once again. This would become the third Xbox price increase in a single calendar year. The Xbox Series X 2TB model is already selling for close to $800, and this may not be the final increase.
This Isn’t About Greed; It’s About a Global RAM Shortage
The main reason behind these increases is a worldwide shortage of RAM chips and other essential hardware components. This time, gaming companies themselves are not the ones responsible. Major AI companies are building massive data centers and are purchasing huge amounts of RAM and chip components needed to run large-scale AI models. This has led to a global supply shortage that affects every industry, including gaming.
AI Companies Are Buying Up the World’s Supply
Tech giants and AI-focused companies are purchasing nearly 40 percent of the world’s DRAM supply. These components are not only used in consoles but also in computers, cars, smartphones, servers, and other everyday electronics. With AI companies buying components in bulk, prices of memory chips have tripled over the last two years. Manufacturers are now forced to compete with higher bids to secure even a small portion of the global supply.
Why Xbox Is Affected Worse Than PlayStation
Xbox is facing a much bigger struggle than PlayStation for two major reasons. Microsoft failed to stockpile components before shortages began, while Sony prepared early. Sony invested heavily in stockpiling chips and hardware when tariff discussions first started in the United States. That decision put Sony in a stronger position to handle today’s shortages. Meanwhile, Microsoft is heavily invested in AI and prioritizes its server hardware over console production. With limited RAM supply available, Microsoft is choosing to support its AI initiatives instead of focusing on Xbox consoles.
Xbox Sales Are Already Weak. This Makes It Worse
Before the latest shortages and price increases, Xbox sales were already unusually low. Recent quarterly data shows that Xbox hardware is performing poorly worldwide. Even major titles like the newest Call of Duty, which historically dominate sales charts, are showing weak numbers and performing significantly worse than Battlefield in Europe. Higher console prices, increased Game Pass costs, and a lack of exclusives make Xbox’s current situation even more unstable.
Why PlayStation Is Safer (For Now)
Sony remains safe for the moment because it prepared early by securing large amounts of hardware while prices were low. This allows PlayStation to avoid price increases for now, and it even allowed Sony to run Black Friday discounts while Microsoft offered none. However, even PlayStation may face issues in the future if the global shortage continues. Stockpiling only delays the impact; it does not prevent it entirely.
AI Boom Could Permanently Increase Console Prices
There is growing concern that console prices may never return to normal levels. Once consumers get used to higher price ranges, companies may choose not to lower prices even when shortages end. If this happens, the future of console gaming could become significantly more expensive, with new hardware costing as much as high-end smartphones.
Microsoft’s AI Push Is Changing Gaming and Not in a Good Way
Microsoft has openly stated its desire to use AI in game development. Signs of this shift are already visible in recent releases that feature AI-generated assets and artwork. Many gamers believe this reduces the overall quality of games and are unwilling to pay premium prices for titles that rely heavily on AI. The use of AI-generated elements in a $70 game raises concerns about value and quality across the industry.
What This Means for Gamers
The combination of higher component costs, a global RAM shortage, weak Xbox sales, and Microsoft’s internal shift toward AI may push console gaming into one of its most unstable periods in years. If shortages continue and prices remain high, consumers may eventually face significantly more expensive consoles. This could change the structure of the gaming industry and reshape how future console generations are released.
Whether someone prefers Xbox, PlayStation, or PC gaming, this situation affects the entire gaming community. The global race for AI hardware is causing ripple effects across industries, and gaming is caught directly in the middle. Microsoft appears to be shifting its focus toward AI over consoles, while Sony’s early preparation has allowed PlayStation to stay protected for now. However, if shortages continue, every console manufacturer will eventually feel the impact. The future of affordable gaming hardware is now uncertain.
Also Read