AI Memory Crunch Sends Console and Laptop Prices
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- Apple raised tablet and laptop prices by nearly 20%, prompting Senator Bernie Sanders to label the move "corporate greed" while Apple's Q4 2025 revenue rose 16% to $144bn and its share price tumbled on the announcement.
- Microsoft announced its third Xbox Series S/X price hike in just over a year — at least $100 per console, effective August — making new consoles 30-40% more expensive than a year ago.
- Ramageddon: 32GB DDR5 components for PCs jumped from $94 in Q3 2025 to $282 in Q1 2026, a 122% surge in a single quarter, as AI data centers compete with consumer electronics for the same memory chips.
- Nintendo will raise Switch 2 prices globally from September, while Valve hiked Steam Deck costs by 40% in May and Sony raised PS5 prices citing "continued pressures in the global economic landscape."
- Micron reported quarterly revenue quadrupled as chip makers reap a windfall from the shortage, though CEO Sanjay Mehrotra told investors there is "no line of sight" on when supply will catch up with demand.
- Counterpoint Research VP Neil Shah expects the constrained supply situation to last up to two years, and analysts warned Strait of Hormuz blockade inflation could push prices even higher.
Why it matters: Consumers are now competing with AI data centers for the same memory chips, with a 122% DDR5 price surge in Q1 2026 translating into 20-40% hikes on devices that used to get cheaper with age. Gamers foot the bill while Micron's revenue quadruples and analysts project the squeeze lasting two years.
