Late December reports from industry insiders claim Sony and Microsoft are debating whether to delay their next-generation consoles. The PlayStation 6 and next Xbox face a supply crisis that has nothing to do with technical development. Memory manufacturers have diverted production capacity to AI data centres, and the resulting shortage threatens to make next-generation consoles either prohibitively expensive or difficult to manufacture at scale. Console makers now weigh difficult options: launch expensive machines with limited supply, or wait for the market to stabilise.
The memory shortage affects more than consoles. PC builders have watched RAM prices climb steadily, smartphone and laptop manufacturers face similar constraints, and sectors that rely on consistent hardware cycles feel the squeeze as component costs ripple through the tech ecosystem. From demanding multiplayer games to live-streaming sessions, various gaming niches require substantial RAM. Live sessions are especially popular in iGaming, where new UK casino sites keep offering new features in which powerful RAM units are important for seamless gaming.
This broader context makes the console delay discussion more than just a gaming industry problem.
What the Industry Sources Say
Insider Gaming broke the story, reporting that rising RAM prices driven by AI demand have triggered internal debates at major console manufacturers. According to the outlet’s sources, memory module prices have climbed “by several hundred percent” in recent months, though this figure has not been independently verified. The discussions reportedly centre on whether to wait out the spike or proceed with launches that could price machines beyond what most consumers will pay.
Other gaming outlets have picked up the thread. Pure Xbox noted manufacturers are “debating” a delay and warned that eventual consoles could be “extortionate” if launched at current memory prices. TrendForce echoed the surge language and added that rising memory costs could push current-generation console prices higher as early as 2026.
The reporting frames this as internal risk management rather than confirmed delays. Both companies have kept their next-generation plans private, so no official launch windows exist that could be pushed back.
Why Memory Has Become the Constraint
Unlike the pandemic-era chip shortage that affected processors and graphics cards, this crisis centres specifically on DRAM modules. The Verge describes a severe RAM shortage where AI data centres are purchasing enormous quantities of memory and suppliers are prioritising those buyers over consumer electronics. Three companies control most of the world’s DRAM production: Samsung, SK hynix and Micron.
That concentration creates vulnerability for anyone who needs memory but cannot compete with the margins AI customers offer. Next-generation consoles will require high-bandwidth memory configurations that can feed both CPU and GPU operations simultaneously. The specific memory type may differ from what goes into PCs, but the manufacturing capacity comes from the same factories and the same production lines. When those facilities prioritise data centre orders, console manufacturers join smartphone makers and PC builders in a scramble for whatever capacity remains available.
Modern consoles cannot simply scale back memory specifications without compromising performance. The architecture demands it. Games developed for next-generation systems will expect certain memory speeds and capacities, which lock manufacturers into configurations that become expensive when supply tightens.
The RAM shortage has pushed some manufacturers to explore alternatives. Recent investment in optical memory technologies suggests the industry recognises that reliance on traditional DRAM creates long-term vulnerability, though these experimental solutions remain years away from commercial viability.
Price Signals Already Visible in Consumer Products
The RAM inflation story has traction because consumers can already see it in shipping products. Framework announced another round of DDR5 price increases and said suppliers indicate prices will likely keep rising into early 2026. Separate reporting on Samsung points to bulk contract DDR5 pricing jumping sharply, with claims of limited stock availability. These increases ripple into the cost of laptops, phones and other devices that purchase memory at scale.
If Sony or Microsoft tried to lock a bill of materials for a 2027 class console right now, they would lock in a painful memory cost structure or risk supply shortfalls that could recreate the launch scarcity problems that plagued early PS5 buyers. Neither company wants to repeat that experience, which saw scalpers dominate the market and legitimate customers unable to purchase consoles for months.
Current-Generation Consoles May Also Face Price Pressure
The delay discussion extends beyond next-generation hardware. TrendForce flagged the possibility of further current-generation price increases in 2026 due to rising memory costs. Earlier leak coverage suggested Microsoft could face additional pricing pressure tied to RAM shortages.
Current consoles use older memory technology than next-generation systems will require, but they still consume DRAM manufacturing capacity. As suppliers prioritise AI customers, production lines that could make memory for PS5 or Xbox Series X|S get reallocated. The result is a tighter supply and higher costs for components that were supposed to be getting cheaper as the generation matured.
Manufacturers typically reduce console prices over time as component costs drop. The current memory situation reverses that trend, forcing hardware makers to choose between absorbing higher costs or passing them to consumers.