Key Takeaways
1. Microsoft may raise Xbox console prices due to ongoing RAM shortages, while Sony is better positioned to keep PS5 prices steady.
2. The RAM shortage is largely caused by high demand from AI data centers, impacting components like graphics cards and gaming consoles.
3. Sony has a reserve of GDDR6 SDRAM, allowing them to avoid immediate price increases and even offer discounts.
4. Xbox Series X prices have risen to $649.99, up from $499.99 at launch, contributing to low sentiment among Xbox fans.
5. The memory crisis may also affect the Valve Steam Machine, with potential supply issues and rapid sellouts of available stock.
It’s tough to think that Xbox console prices could go up even more, but a recent report indicates that Microsoft might feel it has no choice. According to Moore’s Law Is Dead, the company is really worried about the ongoing RAM shortages. In contrast, Sony seems to be in a better position to handle the situation, which is helping it keep PS5 prices steady.
Impact of Low Memory Supply
The latest video from Moore’s Law Is Dead shows how a shortage of memory is affecting consumers. A lot of the issues are linked to OpenAI’s Stargate project, which is estimated to have taken up 40% of the world’s DRAM supply. As AI data centers demand faster memory, manufacturers are shifting their focus. Consequently, components like graphics cards, SSDs, and gaming consoles that rely on this memory might also see price increases.
Sony’s Advantage
Sources from MLID suggest that Sony is in a stronger position regarding the RAM shortage. With a reserve of GDDR6 SDRAM, they’re able to avoid immediate price increases for PS5 consoles. This strategy has even allowed them to offer discounts on the gaming systems for Black Friday. On the flip side, Microsoft is said to have not “planned ahead at all.”
Microsoft is now informing its partners that further price hikes for Xbox consoles are likely. Some retailers are already out of stock, and the demand for the consoles could completely drop off.
Current Xbox Pricing and Fan Sentiment
The mood among Xbox fans is at a very low point. The price for the Xbox Series X is currently $649.99 for the disc version, compared to a more affordable $499.99 at its 2020 launch. To add to the disappointment, Game Pass subscriptions have also become pricier. Without new exclusive games, there’s even less reason to invest in the hardware.
Moore’s Law Is Dead is unsure how this memory shortage will affect the Valve Steam Machine. If it is a contributing factor, buyers might see a strong initial supply sell out quickly with no restock in the near future.
Neither Microsoft nor Sony has made any statements regarding the growing memory crisis. Regardless, with DDR5 memory prices skyrocketing, some gamers are quickly buying up any components that might be affected.
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