Key Takeaways
1. MSI plans to increase prices of gaming laptops and GPUs by 15-30% due to memory shortages.
2. The PC market may decline by 10-20% by 2026, according to MSI’s co-founder Huang Jinqing.
3. MSI has limited memory inventory of only 1-2 months and faces challenges from DRAM suppliers.
4. High-end graphics cards like the RTX 5070, 5080, and 5090 are seeing unprecedented price increases.
5. MSI is shifting focus from budget gamers to enthusiasts and enterprise clients to capitalize on AI server growth.
Building or purchasing a PC has become too expensive for a lot of gamers. Sadly, the Taiwanese Economic Daily News has shared more troubling news from another manufacturer. Due to the shortage of memory, MSI is planning to increase the prices of gaming laptops and GPUs by 15-30%. The company will focus on higher-end products and increase production of AI servers.
Update from MSI’s Co-founder
During a recent briefing, co-founder and executive Huang Jinqing informed investors about the situation. The rising costs of memory might also impact prebuilt gaming desktops and handheld devices. Jinqing noted the effect of the limited components, predicting that the PC market could decline by 10-20% by 2026.
Inventory Concerns
The Taiwanese news outlet reported that MSI currently has only “1-2 months of secure memory inventory.” DRAM suppliers, like Samsung and SK Hynix, are hesitant to make long-term agreements. Despite these difficulties, the company is optimistic that it can manage costs by raising the prices of gaming laptops and GPUs.
MSI’s strategy is clear when it comes to the graphics card sector. As Nvidia responds to the rising demands of AI data centers, it is sending a reduced number of chips to its partners. MSI anticipates selling fewer Blackwell cards but will concentrate on the more profitable premium SKUs.
Price Shock for Gamers
Gamers have been shocked as options like the RTX 5070, 5080, and 5090 appear at unprecedented prices. These models might even get pricier to boost profit margins. The more commonly available RTX 5050 could also face threats since it doesn’t generate significant revenue.
The company also plans to revisit the past with more DDR4-compatible motherboards. Although older modules have been affected by the memory crisis, they are still less expensive than DDR5 RAM. Gamers may need to settle for reduced performance in the latest gaming laptops and desktops.
MSI has previously supported budget-conscious gamers with its MAG monitors and motherboards. However, it is now focusing on enthusiasts and enterprise clients to take advantage of the AI server growth. Even with a decline in the gaming PC market, it aims for an annual growth rate of 50-100% in the next 3-5 years.
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