A surprising new bottleneck—one that has nothing to do with GPUs or exclusive launch titles—might be quietly reshaping the next console generation. Insiders now say runaway demand for memory driven by AI data centers has pushed RAM prices skyward and opened a real possibility: Microsoft and Sony could push their next consoles out of the 2027–2028 window, or sell them at painfully high prices when they finally arrive.
Tom Henderson, a well-known industry leaker writing for Insider Gaming, told colleagues that console makers are "debating" whether to delay hardware launches to wait for improved DRAM capacity and lower costs. That same thread of reporting traces back to earlier coverage from the likes of Moore's Law Is Dead and observer pieces noting dramatic DRAM price spikes in recent months.
Why RAM suddenly matters more than it used to
Consoles have always required a predictable supply of DRAM to hit price points that consumers will tolerate. But the memory market is being pulled in a new direction by generative AI workloads—huge server farms that gobble up RAM to keep models happy. Companies building AI infrastructure are placing large, long-term orders for DRAM, and suppliers are scrambling to reallocate capacity. Some manufacturers are even shifting NAND lines toward DRAM to try to catch up.
The result: module prices that analysts and insiders say have climbed "by several hundred percent" in recent months. Those sorts of increases don’t just nibble at margins; they reshape design choices, force parts substitutions, or create the kind of impossible trade-offs that delay launches.
It’s not only a memory problem in the abstract. AI has become a strategic business priority for many of the same companies that will buy consoles in the millions. Microsoft, for example, is deep into an AI pivot—recent projects such as Microsoft's MAI-Image-1 indicate just how central these investments are. Google and others are even thinking about radical infrastructure moves; projects like Google’s Project Suncatcher show how seriously companies are chasing new capacity and performance for AI workloads.
What this could mean for consoles and consumers
If Sony and Microsoft decide to wait for cheaper memory, we could see launch slips into 2028 or later. If they don't wait, the alternative may be painful: higher retail prices for next-gen hardware and possibly another round of price increases for current-generation consoles.
Gamers are already feeling sticker shock. Retail prices for current-gen consoles have nudged upward in many regions—examples range from new special editions to bumping the Xbox Series S and X bundles—and Nintendo even weighed price adjustments while launching the Switch 2. Nintendo’s recent strong sales forecasts and cautious pricing choices for the Switch 2 underscore the tightrope all platform holders now walk; see how Nintendo's numbers have surged and shaped decisions in the market in our related coverage on Nintendo's Switch 2 sales surge.
There’s also a downstream effect on accessories and first-party strategy: when hardware is expensive, publishers pressure for higher attach rates on software and subscriptions to recoup margins. That can change the economics of day-one launches, Game Pass deals, and DLC pricing.
For people thinking about buying a console in the near term, there’s a practical consideration: if a manufacturer opts to hike prices on current hardware to offset component costs, early buyers could face higher costs later—though supply shortages could also spur sudden discounts as shops clear inventory. For those eyeing a possible high-end upgrade, the rumored PlayStation 5 Pro (and its pricing trajectory) is now more uncertain—if you’re tracking specific bundles, the PlayStation 5 Pro remains one to watch.
Industry watchers point to a few possible mitigating factors: memory vendors are investing to expand capacity, and some predict supply tightness could ease by the late 2020s. But others warn the imbalance between AI demand and consumer electronics could persist for several years, leaving the 2027–2028 horizon shaky.
This isn’t just a hardware story; it’s where manufacturing, corporate strategy and consumer expectations collide. The next few months will be telling—if console makers publicly adjust timetables or revise pricing, that will be a clear signal that the memory market is shaping not just server rooms, but living-room entertainment.
One thing to watch beyond the supply numbers is how platform holders balance risk: announce as planned and accept slimmer margins (or higher MSRPs), or push back and hope factories catch up. Either choice will be expensive, and gamers are already the ones who feel the pinch first.