AI-driven chip shortage pushes up prices on consoles, TVs and audio gear

The artificial intelligence infrastructure boom is squeezing memory chip supplies so severely that consumers are now paying markedly more for everyday electronics — from gaming consoles and laptops to smart TVs, audio equipment, and streaming devices. The shortage, dubbed "RAMageddon" by industry watchers, shows no signs of easing, with Samsung warning last week that conditions will worsen in 2027 and remain tight through 2028.indexbox+1

A Broad and Deepening Shortage

The root cause is straightforward: chipmakers are directing production toward high-bandwidth memory used in AI data centers, leaving conventional DRAM and NAND in short supply. Samsung, SK Hynix ↗ 8.17%, and Micron ↗ 7.62% are prioritizing these lucrative AI contracts while cloud giants Microsoft ↗ 1.06%, Google Alphabet Inc. ↗ 0.77%, and Amazon Amazon.com, Inc. ↘ 2.32% lock in long-term supply agreements that further tighten availability for consumer-facing manufacturers.ecoustics+1

TrendForce projects conventional DRAM contract prices will rise another 13 to 18 percent quarter-over-quarter in Q3 2026, with NAND flash expected to climb 10 to 15 percent. That follows a staggering 58 to 63 percent quarterly jump in Q2 2026. During Samsung's Q2 2026 earnings call, executives said supply constraints are "expected to become even more severe in 2027," with no meaningful relief anticipated before 2028.trendforce+4

Consumer Impact Already Visible

The cascade of price hikes across the industry is unprecedented in its breadth. Apple ↗ 1.96% raised MacBook and iPad prices in late June, with the 512GB MacBook Air jumping from $1,099 to $1,299 and the 128GB iPad Air rising from $599 to $749, according to Reuters. Microsoft's Xbox console prices increased on August 1, pushing the Series X to $799 — a $150 hike on hardware that is now six years old. Sony raised PlayStation 5 prices in April, with the standard model reaching $649.99 and the PS5 Pro hitting $899.99.news.xbox+3

In the audio and home entertainment space, manufacturers including FiiO and Shanling have announced price increases, while Roku ↗ 1.02% raised streaming device prices by as much as 50 percent. The pressure extends to smart TVs, AV receivers, soundbars, and wireless speakers — all of which rely on the same constrained memory and processor components.ecoustics

No Relief in Sight

TrendForce analyst Ellie Wang told AFP that memory prices for PCs and smartphones are up five to six times compared with a year ago. In Hong Kong, computer shop managers report business has halved since prices began climbing, with customers either downgrading specifications or simply waiting.thedailystar

Industry forecasts suggest the pressure may persist through at least 2028, as chipmakers show little incentive to shift capacity back toward consumer-grade components while AI infrastructure spending remains this lucrative.tweaktown+1