The cost makeup of video game consoles has changed in recent years: it is no longer only the CPU or graphics controller that most affects retail prices. Memory chips and the competition for semiconductor manufacturing capacity — driven largely by the rapid expansion of artificial intelligence (AI) data centers — now play a central role. At the same time, manufacturers’ commercial choices, such as dropping physical discs, are altering the market dynamics.
Sony goes digital-only for new releases
In early July 2024, Sony announced it will stop producing physical disc releases for new PlayStation games from January 2028. From that date onward, new titles will be available only digitally via the PlayStation Store or as download codes through retailers. Sony framed the decision as a response to changing consumer habits: digital sales already substantially exceed disc sales, and independent research suggests nearly 80 percent of PlayStation games will be sold digitally by 2025.
For Sony this reduces disc manufacturing and logistics costs, increases control over pricing, and can simplify development for the next console generation. Several industry analysts say this move also makes it likely that PlayStation 6 will ship without an optical drive.
Memory has become the critical component
Among the most expensive parts in a modern console are the custom AMD chip, high-speed GDDR6 memory and the NAND flash used in SSDs. Memory in particular has become critical because the same three companies — Samsung, SK Hynix and Micron — supply both consumer electronics manufacturers and AI data centers. As the AI sector expands rapidly, manufacturers are reallocating capacity toward high-performance memory for AI, which tightens supply of the DRAM, GDDR6 and NAND used by consoles and PCs.
Market researcher TrendForce projects that by Q1 2026 contract prices for DRAM could increase by as much as 90–95 percent, while NAND flash prices might rise 55–60 percent compared with prior periods. The firm attributes this mainly to the memory demands of AI servers and limited production capacity.
Volatile memory prices and the AI boom
The memory industry has been highly volatile over the past six years: the pandemic-driven surge in demand for notebooks, servers and home PCs in 2020 pushed prices up; global chip shortages in 2021 reinforced that trend. In 2022 demand fell while manufacturers accumulated inventories, producing price declines of 30–50 percent in some segments; in 2023 several memory types hit historical lows. The AI boom in 2024 restarted an upward cycle, and the 2026 price rises forecast by TrendForce appear to be the next phase of that cycle, with no clear sign yet that the increases will stop.
Hungarian consumers felt the impact more strongly
Global changes have shown up in Hungarian retail prices as well, sometimes more noticeably. A 16 GB DDR4 kit cost roughly HUF 18,000–22,000 in 2020, fell to HUF 11,000–13,000 in 2023, and in 2024–2025 is typically seen again in the HUF 18,000–25,000 range. 32 GB DDR5 kits were priced around HUF 70,000–90,000 at launch, dropped to HUF 35,000–45,000 by 2024, and this year are commonly available for HUF 50,000–70,000 or higher.
Hungarian consumer prices were influenced not only by world market chip costs but also by the forint exchange rate, a 27 percent VAT rate, and local importers’ stocking practices, so domestic price increases have in many cases outpaced international trends.
What this means for the next console generation
When PlayStation 5 and Xbox Series X launched in 2020, the semiconductor industry’s main challenge was pandemic-related supply disruptions. Development of the next generation is happening in a different environment: AI is competing for the same manufacturing capacity and memory that consoles need. That does not automatically guarantee that PlayStation 6 or the next Xbox will launch at record-high retail prices — manufacturers can still sell hardware at a loss and recoup revenue via games, subscriptions and digital services — but their flexibility is reduced.
Combined with Sony’s move toward fully digital distribution, rising costs in the memory and semiconductor markets suggest that the raw-material demands of the AI era will increasingly influence console pricing and availability. In short: console economics are no longer driven only by hardware design and player demand; the memory squeeze from AI and semiconductor capacity constraints are now central factors that could make gaming a more expensive hobby.
